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KARACHI: The Pakistan Stock Exchange (PSX) extended its recovery rally on Tuesday, with the benchmark KSE-100 index surging more than 3,350 points to reclaim the 180,000 level for the first time since February, as investors snapped up blue-chip stocks amid improving global sentiment and easing concerns over regional tensions.
The market’s upbeat performance followed the State Bank of Pakistan’s decision to keep its policy rate unchanged at 11.5 per cent despite persistent inflationary pressures. Investor confidence was further strengthened by declining international oil prices and reports of a peace memorandum signed by the US and Iran, which raised hopes of reduced geopolitical risks and an improved economic outlook.
The KSE-100 index remained firmly in positive territory throughout the session. It touched an intraday high of 3,463 points before closing at 180,393, up 3,353 points, or 1.89pc, from the previous session.
Analysts said falling crude oil prices continued to bolster expectations of lower inflation and an improved external account position, encouraging investors to increase exposure to equities. Market participants also viewed the easing of regional tensions as supportive of economic stability and investor confidence.
According to Topline Securities, aggressive buying emerged across key sectors as favourable global cues lifted sentiment. The brokerage house noted that hopes surrounding the signing of a memorandum of understanding between Washington and Tehran, reportedly expected later this week, further enhanced risk appetite.
Heavyweight stocks played a central role in driving the rally. Shares of United Bank Ltd, Engro Holdings, Bank AL Habib, National Bank of Pakistan and Pakistan Petroleum Ltd were the leading contributors to the index’s advance, collectively adding around 1,663 points.
Trading activity also strengthened significantly, reflecting broad-based participation. Total traded volume rose 23.48pc to 1.224 billion shares, while the value of shares traded increased 10.61pc to Rs70.2 billion.
Lotte Chemical Pakistan Ltd led the volume chart, with approximately 108 million shares changing hands.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX maintained its bullish momentum as investors continued to favour banking and cyclical stocks following the central bank’s decision to leave interest rates unchanged.
He noted that sentiment was further supported by improving macroeconomic indicators, easing regional tensions and expectations of softer oil prices, all of which could positively influence Pakistan’s inflation trajectory and external sector outlook.
Investors remained active across a broad range of sectors, underlining confidence in the market’s near-term prospects.
Analysts expect positive momentum to persist in the coming sessions, supported by a stable interest-rate environment, improving macroeconomic conditions and lower oil prices. However, they cautioned that intermittent profit-taking may emerge following the market’s recent strong gains.
Published in Dawn, June 17th, 2026
