KARACHI: After losing a substantial amount in market capitalisation over the last couple of sessions due to panic-driven selling amid worsening geopolitical tensions, the Pakistan Stock Exchange (PSX) on Wednesday witnessed val­ue-hunting by equity investors, which helped the benchmark KSE-100 index close the session in the green, partially recovering some losses.

Topline Securities Ltd said the index staged a strong recovery, closing at 175,285 points, up 1,767 points or 1.02 per cent, recouping part of the losses from the first two sessions of the week. The index remained firmly in positive territory throughout the session, reaching an intraday high of 176,701 points and a low of 173,870 points, reflecting renewed buying interest across key sectors.

Value-hunting helps index reverse two-day downturn

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX reboun­ded on renewed buying interest, as investors accumulated select blue-chip stocks trading at attractive valuations. However, geopolitical uncertainty persisted, with no meaningful signs of de-escalation following last week’s ceasefire between the US and Iran, keeping overall investor sentiment cautious.

On the macro front, media reports indicate that the government is considering adopting a daily pricing mechanism for domestic petroleum products, with the Oil & Gas Regulatory Authority (Ogra) expected to oversee its implementation.

On the index contribution front, United Bank, Engro Holdings, National Bank, Meezan, Habib Bank, Fauji Fertiliser, Engro Fertiliser, Lucky Cement, Askari Bank, and Maple Leaf Cement Factory drew renewed buying interest, collectively adding 1,211 points to the benchmark index.

However, despite a positive market trend, investor participation weakened sh­­a­­­­­rply as trading volume dipped by 36.02pc to 583.8 million shares and total tur­­­­nover plunged by 42.9pc to Rs25.9bn. K-Electric top­p­­­­ed the volume chart with 52.6 million shares traded.

Analysts say the market direction is likely to remain driven by developments on the geopolitical front. While attractive valuations may continue to encourage selective buying, a sustained recovery will likely depend on easing global tensions and a decline in international oil prices, which will improve investor confidence.

Published in Dawn, July 16th, 2026