The Pakistan Stock Exchange (PSX) extended its recovery on Tuesday as the benchmark KSE-100 Index gained 1,455 points. Buying in heavyweight stocks supported the market despite renewed geopolitical uncertainty and concerns over rising oil prices.

The index opened on a positive note and maintained its upward momentum throughout the session. It touched an intraday high of 168,469.78 and a low of 167,308.66.

At the close, the KSE-100 settled at 168,018.87, gaining 1,454.80 points, or 0.87%.

Heavyweight Stocks Support Market Recovery

Investors showed continued interest in local equities despite reports of a US strike on Iran’s Qeshm Island. An Iranian official also indicated that Tehran and Washington remained far from reaching an agreement to end the conflict.

These developments renewed concerns about the regional situation and pushed crude prices higher after their sharp decline in the previous session.

However, bargain hunting in heavyweight stocks helped the benchmark maintain its gains.

“PSX experienced a green session on Tuesday as the KSE-100 index gained 1,455 points (+0.87%) day-on-day, with 212 million shares traded,” Ahmed Sheraz of KASB KTrade wrote in his market wrap.

Gold Prices Remain Unchanged in Pakistan as Dollar Strength Weighs on Global Bullion

Buying extended across several sectors, including commercial banks, fertiliser companies, cement firms and investment banks.

Fauji Fertiliser, Engro Holdings, HBL, Pakistan Services, Meezan Bank and Engro Fertilisers were among the stocks identified as major contributors to the index.

Oil Prices and US-Iran Talks Shape Sentiment

Oil prices traded between $104 and $106 per barrel after briefly touching $107. Although crude remained below its recent peak, its rebound added to market uncertainty.

Investors also monitored the US midterm elections and diplomatic efforts between Washington and Tehran through mediators.

Market sentiment received some support from US President Donald Trump’s indication that Washington had no immediate plans to strike Iran. The remarks raised hopes of further diplomatic progress.

“Going forward, developments on the geopolitical front, particularly the US elections and US-Iran parleys, will remain key factors shaping market direction,” Sheraz added.

Ali Najib, deputy head of trading at Arif Habib Limited, said investors entered the session with hopes of progress towards resolving the US-Iran conflict.

“The market opened on a strong note in anticipation of resolution of the US-Iran conflict as fresh diplomatic efforts raised hopes again,” Najib said.

He attributed broad-based buying, particularly in blue-chip stocks, to softer oil prices. This support helped the benchmark close above the 168,000 level.

Najib cautioned that the market could remain volatile as geopolitical developments and global political uncertainty continue to influence investor sentiment.

“Going forward, the market is likely to stay volatile amid evolving US-Iran developments and global political uncertainty. Progress on diplomatic efforts may support sentiment, while investors remain cautious ahead of US election outcome,” he said.

Trading Activity Increases at PSX

Trading activity improved during the session. Total volume increased to 517.3 million shares from Monday’s 443.4 million.

The value of traded shares reached Rs20.7 billion. Shares of 500 companies changed hands in the ready market.

Of these, 270 stocks closed higher, 189 declined and 41 remained unchanged.

Cnergyico PK led trading volumes with 114.8 million shares. However, its share price fell Rs0.54 to close at Rs11.74.

Foreign investors sold shares worth Rs492.9 million, according to the National Clearing Company of Pakistan.