Pakistan’s benchmark KSE-100 Index recovered 779.35 points, or 0.47 per cent, to close at 165,930.99, ending a two-session losing streak as investors returned to select stocks at lower price levels.
During the trading session, the index fluctuated between an intraday low of 164,732 points and a high of 166,242 points. The recovery came amid continued macroeconomic uncertainty, elevated global oil prices and persistent geopolitical tensions.
United Bank, Hub Power, Habib Bank, Oil and Gas Development Company and Mari Energies were the leading contributors to the market’s gains, collectively adding around 493 points to the benchmark index.
The automobile sector attracted investor attention and closed in positive territory amid optimism surrounding the proposed Auto Policy 2026–31, which aims to strengthen the country’s automotive industry and expand exports.
In contrast, the refinery sector continued to face earnings pressure after the government reduced the high-speed diesel crack spread from $41.89 to $38 per barrel for a period of three months.
Ali Najib, Deputy Head of Trading at Arif Habib Limited, attributed the market’s recovery to renewed institutional buying, supported by optimism over diplomatic efforts to resolve the US-Iran conflict and expectations of easing geopolitical tensions.
The proposed five-year automotive roadmap aims to increase vehicle exports to $6 billion through tariff rationalisation, greater localisation and incentives for electric vehicles. The draft policy also proposes export-linked incentives and stricter safety standards, subject to the required approvals, including clearance from the International Monetary Fund (IMF).
Despite the positive market performance, trading activity remained mixed. Volume declined by 14.98 per cent to 379.9 million shares, while the total value of shares traded increased by 9.54 per cent to Rs21.2 billion. Pakistan Refinery led the volume chart with 49.4 million shares traded.
Market analysts believe institutional buying, optimism over US-Iran diplomatic engagement and renewed interest in automobile stocks could support further gains. However, geopolitical developments and macroeconomic risks may continue to fuel volatility, encouraging investors to adopt a selective investment strategy.
