The PSX rebounds after a historic plunge as the benchmark KSE-100 Index gained more than 2,000 points on Tuesday, following a record-breaking fall triggered by escalating Middle East tensions.
After losing over 16,000 points on Monday, the Pakistan Stock Exchange showed signs of recovery as investors returned to the market.
The KSE-100 Index rose to an intraday high of 156,106.01, gaining 4,133.02 points, or 2.72%, from the previous close of 151,972.99. It later receded to a low of 151,258.85.
Monday’s session marked the index’s biggest ever one-day fall, closing down 16,089.17 points, or 9.57%.
Market analysts at Topline Securities said that after panic-driven selling largely fueled by mutual fund activity, a pullback was expected. According to analysts, Tuesday’s rise reflects a technical rebound as value investors stepped in.
However, experts cautioned that the key question remains whether the recovery will sustain or prove to be a short-term bounce.
While the PSX recovered, global markets remained volatile. MSCI’s broad Asia-Pacific index fell 1.5%, with Korean shares dropping sharply and Japan’s Nikkei 225 sliding 2.3%. S&P 500 futures were also lower.
Analysts noted that geopolitical risks have intensified following US and Israeli strikes on Iran. An official from Iran’s Revolutionary Guards said the Strait of Hormuz was closed to marine traffic, raising concerns about energy supply disruptions.
Read: PSX KSE-100 Index Crash: Market Plunges Nearly 10%
The threat pushed supertanker shipping costs to record highs, according to LSEG data.
Oil markets reacted quickly. Brent crude futures added another 2% to $79.22 on Tuesday, while natural gas prices in Europe and Asia surged significantly. Investors are now closely monitoring energy prices and geopolitical developments for signs of stability.
