The Pakistan Stock Exchange (PSX) staged a strong recovery on Tuesday, with the benchmark KSE-100 index gaining 2,593 points as investor sentiment improved on expectations of a positive outcome from ongoing negotiations with the International Monetary Fund (IMF).
Media reports indicated that talks with the IMF were expected to conclude positively later this week, potentially clearing the way for the release of around $1.2 billion under two programmes — the $7 billion Extended Fund Facility (EFF) and the $1.4 billion Resilience and Sustainability Facility (RSF).
According to Topline Securities Ltd, the KSE-100 index rose 2,593 points, or 1.56 per cent, to close at 168,460. During the session, the index moved between 165,652 and 168,626 points.
Buying activity returned across several key sectors, including banking, oil and gas exploration, cement, automobiles, oil marketing companies, refineries and power. Major stocks such as United Bank, Habib Bank, Oil and Gas Development Company, Pakistan Petroleum, Pakistan Oilfield and Hub Power contributed significantly to the recovery.
The market rebound followed a sharp correction in the previous session, while easing crude oil prices also supported investor sentiment. Brent crude was trading at around $98.32 per barrel, down nearly 2 per cent during the day.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market recovered following the previous session’s heavy selling as lower international oil prices and improved oil flows from the Middle East helped ease investor concerns.
Meanwhile, domestic oil production declined 6.4pc week-on-week to 637,000 barrels per day, mainly due to reduced output from northern fields. Gas production also fell 1.4pc to 2,999 million cubic feet per day, largely because of lower production from Mari, Sui and Sharf fields.
On the corporate front, Sazgar Engineering Works Company recorded a 22pc year-on-year increase in sales to 10,872 units during the first quarter of FY27. The increase was driven by a 45pc rise in three-wheeler sales, while four-wheeler sales declined 12pc.
Engro Holdings, United Bank, Hub Power, Habib Bank, OGDC, Mari Energies, Fauji Fertiliser, PPL, National Bank and Meezan Bank collectively added 1,493 points to the index.
Trading activity remained steady, with volume increasing 2.36pc to 432.01 million shares. Total turnover value rose 28.19pc to Rs20.1 billion, while Cnergyico PK topped the volume chart with 55 million shares.
Analysts said the market could maintain its recovery if crude prices remain subdued and concerns over disruptions to Middle Eastern oil supplies continue to ease.
However, geopolitical risks and continued volatility are expected to keep investors cautious. Market participants are likely to focus on oil prices, foreign investment flows and institutional participation in the near term, with the 170,000-point level emerging as a key psychological threshold.
