KARACHI: Following a decline in oil prices amid hopes of a swift resolution to the Middle East conflict, the Pakistan Stock Exchange (PSX), in line with global trends, staged a strong recovery on Tuesday as bargain hunters rushed to buy shares, prompting a halt to trading within a few minutes.

Investors did not want to miss the opportunity to secure attractive valuations, which are usually rare and occur only once in a blue moon. As a result, the benchmark KSE-100 index recorded the second-highest single-day rally in absolute terms in PSX history, helping the market partially recover overnight losses and pushing the benchmark index above the 156,000 mark after falling to 146,480 overnight as US-Iran tensions and rising oil prices unsettled investors, prompting panic-selling.

The benchmark index recorded the highest-ever gain of 10,123 on May 12, 2025, after Pakistan shot down seven Indian fighter planes in retaliation for unprovoked aggression by New Delhi.

Since the all-time peak of 189,166.83 on Jan 23, the index has fallen by 32,989.71, or nearly 17.43 per cent, resulting in a total loss of over Rs3.639 trillion in market capitalisation due to a host of negative developments stemming from geopolitical concerns, including border tensions with Afghanistan.

Bulls trigger trading halt in powerful rebound

However, following comments from the US president suggesting that the conflict might be resolved early, investor sentiment improved as energy prices began falling from multi-year highs to below $90 per barrel after reaching nearly $120 yesterday.

Topline Securities stated that, following yesterday’s panic, the PSX rebounded strongly as confidence quickly returned to the market.

The bulls charged forward aggressively from the opening whistle, causing a temporary market halt amid vigorous buying. Momentum remained robust throughout the session, propelling the index to an impressive intraday rise of 11,873 points before settling at 156,177 — up 9,696 points or 6.62pc.

The rally followed the State Bank of Pakistan’s decision to keep the policy rate unchanged at 10.5pc, which reassured investors and revived risk appetite. Sentiment was further lifted by improving global markets, while declining oil prices helped calm fears of prolonged energy supply disruptions.

Fauji Fertiliser, Engro Holdings, United Bank, Hub Power, and Meezan Bank emerged as major gainers, collectively adding 3,621 points to the index during the session.

Despite a bullish tone, the trading volume fell 21.73pc to 486 million shares and the traded value dipped 15.89pc to Rs31bn.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), said the PSX staged a remarkable rebound, prompting a temporary trading halt in accordance with PSX circuit breaker regulations.

Once trading resumed after an hour, broad-based buying momentum continued across major sectors, driving the benchmark index to an intraday high of 158,354. However, some profit-taking in the final hour of trading trimmed earlier gains.

On the sectoral front, progress on Pakistan’s 5G spectrum auction remained in focus. The auction process is being conducted in two stages through electronic bidding, with six spectrum bands on offer.

If geopolitical conditions remain stable, the positive trend could continue into the next session; however, investors are expected to remain cautious as markets closely monitor external factors.

Published in Dawn, March 11th, 2026