KARACHI: The Pakistan Stock Exchange (PSX) on Tuesday witnessed extreme volatility as investors remained highly nervous ahead of the expiry of a US deadline for a ceasefire deal with Iran, keeping sentiment depressed.

However, late buying helped the index to close in positive territory for the second consecutive day.

Amid a lack of positive news and increasing pressure on Pakistan’s foreign exchange reserves following the repayment of $1.43bn Eurobond, which was due on April 8, and the government’s principled decision to return $3.5bn to the United Arab Emirates this month.

The economy has started feeling the pressure of the ongoing Gulf war, which has slowed exports and increased the cost of imports, especially oil and LNG, amid rising prices caused by the war, which has restricted supplies via the Strait of Hormuz.

Investors nervous ahead of US deadline

Topline Securities Ltd said the local bourse remained volatile, mirroring the overnight trend as the index swung between an intraday low of 2,078 points and a high of 805 points, closing at 151,673, up 465.64 points or 0.31 per cent.

Sentiment improved in the second half following an encouraging tweet from the Iranian Ambassador to Pakistan about progress in ceasefire negotiations, prompting selective buying and helping the index close in the green.

On the index front, key gainers including United Bank, Fauji Fertiliser, Habib Bank, Bank Al-Habib, and Lucky Cement collectively added 387 points to the index.

Investors’ participation weakened sharply as the trading volume fell 21.85pc to 357 million shares, and the traded value plunged 33.81pc to Rs20.4 billion. K-Electric dominated the volume chart, with 53 million shares traded.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said PSX saw a range-bound session as the benchmark index hovered within a narrow span and recorded an intraday high and low of 152,013 and 149,129, respectively.

On the corporate front, Systems Ltd reported strong CY25 results, posting a profit after tax of Rs11,041m (earnings per share of Rs7.49), up 48pc year-on-year. 4QCY25 earnings stood at Rs3,073m (EPS: Rs2.09), rising 60pc year-on-year. The company also announced a final cash dividend of Rs2 per share.

Moreover, Sazgar Engineering Works Ltd reported March Haval sales of 1,734 units, a surge of 96pc year-on-year, while three-wheelers declined 19pc year-on-year to 2,159 units. In 9MFY26, 4-wheel vehicle sales increased by 57pc YoY to 12,630 units, whereas three-wheelers remained unchanged at 19,437 units.

Analysts believe that progress in the ceasefire will be crucial for short-term market direction. Any de-escalation in the Middle East could stabilise sentiment and reduce oil price pressures, and vice versa. This could restore investor confidence, increase inflows, and support a recovery in the PSX.

Published in Dawn, April 8th, 2026