PSX Rebounds Strongly: KSE-100 Gains 1,400 Points After Historic Fall

After suffering one of the steepest falls in its trading history, the Pakistan Stock Exchange (PSX) made a notable comeback on Tuesday morning, with the benchmark KSE-100 Index surging by over 1,400 points during the early hours of trade.

By 9:40 AM, the index had climbed to 116,355.79 points, showing a gain of 1,446.31 points, or approximately 1.26%, as renewed investor confidence brought relief to local markets shaken by global economic uncertainty.

The rebound comes after Monday’s panic sell-off, where the KSE-100 saw a historic intraday drop of nearly 8,700 points, before partially recovering to close 3,882 points lower for the day. The sharp volatility was triggered by widespread concerns over macroeconomic indicators and global financial instability.

Buying interest was observed across several key sectors including:

• Automobile assemblers

• Cement

• Chemical

• Commercial banks

• Oil & Gas Exploration Companies (OGECs)

• Oil Marketing Companies (OMCs)

• Refinery stocks

Major index contributors such as HUBCO, ARL, PSO, SNGPL, MARI, OGDC, PPL, HBL, MCB, and NBP all traded in the green, signaling renewed confidence among institutional and retail investors alike.

Global Markets Rebound

The rebound in PSX mirrored recovery across Asian stock markets, as global investors hoped for easing tensions in the escalating US-China trade war.

Japan’s Nikkei index jumped 5.6%, far outpacing other regional markets. Meanwhile, Hong Kong’s Hang Seng rose 1.7%, and Chinese blue-chip indices also saw moderate gains. The optimism followed reports that Washington may be softening its stance on tariffs, offering a potential path for negotiation.

Despite US President Donald Trump’s threats of additional tariffs on China, business leaders, including JP Morgan CEO Jamie Dimon, expressed concern over inflation and a looming US economic slowdown, possibly pressuring the administration to reconsider its aggressive trade policies.

Commodity markets also showed signs of stabilization. Gold hovered near a 2.5-week low, while crude oil bounced back from its steepest decline in years. The Chinese yuan dipped to a two-month low against the US dollar, further reflecting volatility in currency markets.

Investors are now closely watching both domestic economic cues and the evolving US-China standoff to gauge the market’s next move.