Analyst says market made recovery in "technical terms" following buying by financial institutions.
Analyst says based on pre-election surveys, market was expecting PML-N led coalition govt which now "looks difficult".
Analyst says energy stocks opened at a high as authorities look serious on addressing circular debt.
The KSE-100 index fell by 988.47 points to close at 61,705.09, down 1.58 per cent from the previous close
Analysts attribute losses to high leverage costs and pre-election uncertainty.
Stocks rally 700 points as analysts point to attractive valuations and high dividends yield of banking sector.
Analyst attributes rally to resumption of foreign buying, says bull run in Pakistan equities can turn into a multi-year rally.
Analysts credit rally to factors including IMF agreement, trading spurred by rupee recovery, among others.
Analyst says there are high expectations in the market regarding the IMF board’s approval for the second loan tranche.
Stocks surge by 700 points, PKR up 0.26pc after government unlocked $700m in the second tranche of the Stand-by Agreement.
Local currency depreciates by Rs1.1 in interbank market during afternoon trade.
The KSE-100 lost 124.63, or 0.23pc, to close at 53,735.73.
Analysts attributes run to ongoing IMF review, falling interest rates in secondary markets.
The current rally follows the central bank's decision to maintain the interest rate at 22pc.
The index surged by 650 points before afternoon to finally close at 51,070.82 points.
Rupee recovers its losses against the greenback by Rs1.48.
Volume on the KSE-100 index reached high of 50,017.45 during intraday trade.
Analysts attribute gains to implementation of laws pertaining to currency smuggling.
"Deposits are safe owing to a sound banking system under a robust regulatory and supervisory framework," central bank says.
Rupee appreciates by Rs1.06 against the dollar; PSX continues trading in green and gains 372 points.