KARACHI: Ignoring the economic effects of the ong­o­ing Middle East crisis, bulls on Thursday made a sur­prising recovery, pushing the benchmark index ab­ove 161,000 points as ma­jor investors took advantage of attractive valuations.

To prevent the impact of the war on the already fragile economy amid surging oil prices, the government is considering contingency measures, primarily revie­wing petroleum prices weekly to pass the burden on to consumers, as the closure of the Strait of Hormuz by Iran in retaliation for US-Israel attacks has for­c­ed the world’s largest shipping companies to suspend operations to and from the Gulf. This is likely to incr­ease the cost of rerouting oil supplies from the region.

In view of the upsurge in inflation in February, the equity investors were also anticipating a status quo in the State Bank of Pakistan’s monetary policy review on Monday.

Topline Securities Ltd said the bulls surged back with confidence, firmly establishing their presence from the start. Strong institutional buying reversed the market’s recent overreaction to regional issues, as confidence quickly repl­aced caution.

Index jumps 5,433 points above the 161,000-level

Momentum gained stre­ngth as the session went on, pushing the index to an intraday high of 5,699 points before closing at 161,210, up 5,433 points or 3.49 per cent. It was not just a rebound, but a rally driven by clear accumulation and widespread strength, the brokerage house noted.

Index-heavy constituents, including Hub Power, Oil and Gas Development Company Ltd, Fauji Fert­iliser Company, Engro Hol­d­ings, and Meezan Bank, led the charge, collectively contributing 2,197 points to the benchmark’s rise and reinforcing the bullish sentiment.

Market participation rem­a­ined vibrant, with total traded volume increasing by 16.25pc to 724 million shares, and the traded value rising by 17.45pc to Rs35.1 billion. K-Electric stole the spotlight on the volume leaders’ board, with over 115 million shares changing hands.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), stated that the bourse experienced a significant recovery driven by widespread buying across major sectors, indicating an improvement in investor confidence after recent volatility. Strong institutional interest was noted in oil and gas exploration, oil marketing companies, power generation, cement, automotives, refineries, and banking sectors, with several index-heavy stocks trading confidently in positive territory.

Published in Dawn, March 6th, 2026