KARACHI: After a sluggish overnight start stemming from regional and political uncertainty, the Pakistan Stock Exchange (PSX) on Tuesday saw strong buying interest at attractive valuations, helping the benchmark KSE-100 index recover from recent lows to above the 168,000 level, apparently supported by expectations of a positive conclusion to the ongoing review talks with the visiting International Monetary Fund staff mission.
Media reports suggest negotiations with the IMF are set to conclude on a positive note later this week, paving the way for the disbursement of about $1.2 billion under two programmes — the $7bn Extended Fund Facility (EFF) and the $1.4bn Resilience and Sustainability Facility (RSF).
Topline Securities Ltd said the KSE-100 index rebounded sharply, gaining 2,593 points, or 1.56 per cent, to close at 168,460. The index traded between 165,652 and 168,626 during the session.
Buying interest returned across major sectors, including banks, oil and gas exploration, cement, automobiles, OMCs, refineries, and power. Heavyweights such as United Bank, Habib Bank, Oil and Gas Development Company, Pakistan Petroleum, Pakistan Oilfield, and Hub Power supported the recovery.
The rebound came as investors appeared to take advantage of the previous session’s sharp correction, while easing concerns about oil prices provided some relief. Brent crude was trading around $98.32 per barrel, down about 2pc on the day.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said that following an overnight sharp sell-off, the market rebounded as international oil prices eased and Middle East oil flows improved, helping to restore investor sentiment.
On the sectoral front, oil production declined 6.4pc week on week to 637,000 barrels of oil per day, primarily due to lower flows from northern fields. Gas production fell 1.4pc to 2,999 mmcfd, mainly due to reduced output from Mari, Sui and Sharf.
On the corporate front, sales of Sazgar Engineering Works Company rose 22pc year-on-year to 10,872 units in 1QFY27, driven by a 45pc increase in three-wheeler sales, while four-wheeler sales fell 12pc year-on-year.
Engro Holdings, United Bank, Hub Power, Habib Bank, OGDC, Mari Energies, Fauji Fertiliser, PPL, National Bank, and Meezan Bank collectively contributed 1,493 points.
Market activity remained stable, with trading volume rising 2.36pc to 432.01 million shares and total turnover value jumping 28.19pc to Rs20.1bn. Cnergyico PK led the volume chart with 55m shares.
Analysts expect the market to sustain its recovery momentum if oil prices remain subdued and concerns about Middle East supply continue to ease. However, geopolitical uncertainty and elevated volatility are likely to keep investors cautious. Near-term attention will remain on oil prices, foreign flows, and institutional participation, with 170k serving as the key psychological level.
Published in Dawn, October 7th, 2026
