The Pakistan Stock Exchange (PSX) staged a partial recovery on Tuesday as investors made selective purchases following the sharp decline recorded in the previous session.
According to Topline Securities Ltd, the benchmark index gained 1,421.67 points, or 0.85 per cent, to close at 169,392.33, recovering part of Monday’s 2,541-point loss.
Investor sentiment remained influenced by geopolitical tensions and crude oil prices trading above $100 per barrel. However, the unchanged State Bank of Pakistan policy rate, the recent record $3 billion Eurobond issuance and an improvement in foreign exchange reserves to around $21.4 billion provided some support to the market.
United Bank, Fauji Fertiliser, Lucky Cement, Bank Alfalah and Pakistan Services Ltd were among the major contributors to the index, collectively adding around 640 points.
On the other hand, Meezan Bank, Javedan Corporation Ltd and Sazgar Engineering Works emerged as major drags, together reducing the index by approximately 179 points.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said investors engaged in selective buying across automobile assemblers, cement, commercial banks, exploration and production companies, refineries, power companies and oil marketing companies.
He attributed the buying interest partly to the continuation of the monetary policy stance, with the policy rate maintained at 11.5 per cent.
On the corporate front, Mughal Iron and Steel Industries Ltd reported a 2.6-fold year-on-year increase in profit for fiscal year 2026, reaching Rs2.487 billion.
The company reported earnings per share of Rs7.41, compared with Rs2.88 in the same period last year, when profit stood at Rs966 million.
Arif Habib Ltd attributed the increase in earnings to improved gross margins, lower finance costs and higher other income.
However, earnings per share for the fourth quarter declined 29 per cent year-on-year to Rs1.08.
The company also announced a dividend of Rs2 per share, marking its first payout in two years and equivalent to its historical payout ratio of 27 per cent.
Market participation weakened during the session, with trading volume falling 34.78 per cent to 372 million shares. Total traded value also declined 30.24 per cent to Rs17.1 billion.
Cnergyico PK led the volume chart with 56.2 million shares traded.
Analysts expect market activity to remain volatile, with investors likely to focus on selective profit-taking and stock-specific developments during the ongoing corporate earnings season.
Geopolitical developments and movements in international oil prices are also expected to remain key factors influencing market sentiment and the direction of the benchmark index.
