After a day of losses, bulls returned to the trading floor of the Pakistan Stock Exchange (PSX) on Tuesday.

According to the PSX website, the KSE-100 index gained 414.46 points to close at 66,426.78 points, up by 0.63 per cent from the previous close of 66,012.32.

The winning streak of major shares came to a halt on Monday as investors opted for profit-taking across the board. Analysts said power, oil marketing and banking sectors had received considerable selling pressure.

A report by Intermarket Securities painted a hopeful picture of the investment landscape, noting that “Pakistan is addressing the two key areas — politics and the economy — that have historically hurt the case for equities.”

The report highlighted that attention was turning to “resilient corporate profitability and cheap valuations, which was at a 50pc discount to the long-term mean.”

The analysts further predicted the benchmark index to reach 85,000 points, “driven by valuation rerating, as interest rates reduce and institutional buying returns.”

Speaking to Dawn.com today, Mohammed Sohail, chief executive of Topline Securities, noted that stocks were on the rise once again due to the continued interest of foreign portfolio managers.

He highlighted that the central bank’s decision on key rates, expected today, was critical for market outlook in the short run.