KSE-100 Surges 2,593 Points as Political Uncertainty Eases

The Pakistan Stock Exchange (PSX) rebounded sharply on Tuesday, with the benchmark KSE-100 Index climbing 2,592.79 points, or 1.56%, to close at 168,460.11, driven by broad-based buying amid optimism over easing domestic political tensions.

Investor confidence recovered after Prime Minister Shehbaz Sharif urged the Pakistan Tehreek-e-Insaf (PTI) to halt its agitational politics and cancel its long march, warning that protests would harm economic growth and Pakistan’s global reputation. The conditional call for dialogue provided some relief to investors worried about renewed political instability.

The Index fluctuated between an intraday high of 168,626.18 and a low of 165,651.68, staging a robust recovery from early-session lows as buying momentum spread across key sectors.

Sectors attracting buying interest included automobile assemblers, cement, commercial banks, oil and gas explorers, oil marketers, power generators, and refineries.

International oil prices also softened on Tuesday, with Brent crude dropping below $100 to approximately $98, as resilient Middle Eastern exports and a G7 emergency stockpile release alleviated immediate supply concerns, though regional security risks limited further declines.

“The decline in international oil prices, combined with the government’s openness to negotiations with the PTI to end the long march, has bolstered investor sentiment,” AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune. He added that the easing of both external and domestic concerns has spurred fresh buying and supported the broader market recovery.

Following a heavy sell-off and margin-driven liquidation the previous day, the market initially remained subdued on thin volumes, but improving domestic and global cues triggered broad-based buying and a strong recovery, noted Ahmed Sheraz of KASB KTrade.

Buying activity was evident across commercial banks, Oil & Gas, cement, investment banks, and power, with Engro Holdings, UBL, Hub Power, HBL, Oil & Gas Development Company, and Mari Energies closing in the green.

Further support came from easing oil prices, G7-backed strategic releases, Saudi price support, and improving Red Sea conditions. Additionally, hopes of US-Iran dialogue reduced geopolitical risk after President Trump signaled Washington’s openness to direct talks.

The government’s outreach to the opposition for negotiations added clarity, helping the market regain confidence. Looking ahead, the recovery could extend if geopolitical tensions, oil prices, and domestic political noise remain contained, though some consolidation after the sharp rebound would be healthy, Sheraz predicted.

Trading volume eased to 432 million shares from 441.8 million on Monday, with the value of traded shares at Rs20.1 billion. Of 496 companies traded in the ready market, 314 closed higher, 147 lower, and 35 unchanged.

Cnergyico PK led volume with 55.1 million shares traded, gaining Rs0.72 to close at Rs12.93.

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