KARACHI: The Pakistan Stock Exchange (PSX) on Tuesday experienced extreme volatility, stemming from uncertainty surrounding US-Iran talks as the two-week ceasefire nears expiry. All eyes are on Islamabad for the next round of negotiations aimed at forging an amicable peace deal to end the Middle East conflict.

Topline Securities Ltd said the PSX witnessed a highly volatile session, with investors treading cautiously amid mounting geopolitical concerns. Market participants remained focused on the upcoming negotiations in Islamabad, while mixed signals and rising tensions kept sentiment on edge.

Despite the jittery backdrop, the benchmark index displayed resilience, surging by 3,101 points intraday before settling at 173,155, up 959 points or 0.56 per cent. The choppy price action reflected a tug-of-war between bullish momentum and risk aversion, as investors weighed hopes of diplomatic progress against the risk of further escalation.

Though investor participation remained vibrant, trading volume dipped 10.10 per cent to 1.165 billion shares, while traded value fell 15.82 per cent to Rs54.9 billion. Cnergyico PK led the volume chart, with 83 million shares traded, signalling continued retail interest in low-priced stocks.

Investors stay cautious as geopolitical tensions persist

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX opened strongly before profit-taking trimmed early gains. However, the index managed to close in positive territory.

On the macro front, the State Bank of Pakistan confirmed receipt of $1bn from Saudi Arabia as the second tranche of a $3bn deposit programme, reinforcing external liquidity and supporting investor confidence.

On the corporate side, Pakistan Refinery Ltd reported a strong 3QFY26 result, posting earnings per share of Rs15.8, supported by a record gross profit of Rs18.9bn and margin expansion to 19.4 per cent.

Index gains were led by United Bank Ltd, Bank Al-Habib Ltd, Pakistan State Oil, Meezan Bank Ltd, and Attock Refinery Ltd, contributing a combined 860 points. Meanwhile, National Bank of Pakistan, Oil and Gas Development Company, Cherat Cement Company, Engro Fertilisers Ltd, and Pakistan Oilfields Ltd weighed on the index, collectively shedding 231 points.

Amid uncertainty over the upcoming US-Iran talks in Islamabad, sentiment may remain supported but will be highly sensitive to evolving developments and headlines.

Published in Dawn, April 22nd, 2026