KARACHI: Buying returned to the Pakistan Stock Exchange on Tuesday. The KSE-100 gains of over 400 points in early trading signalled that investors were willing to pick up shares again a day after the market’s sharp selloff.
The benchmark index rose 558.25 points, or 0.34 per cent, to 165,682.66 in the first hour of trading at 9:33am. By midday, the index held a gain of 470.14 points, or 0.28 per cent, at 165,594.55, after touching an intraday high of 166,070.47 and a low of 165,271.67.
The gains followed a brutal session on Monday, when the KSE-100 plunged 1,964.87 points, or 1.18 per cent, to close at 165,124.41.
KSE-100 gains led by banks, cement and energy
Buying interest concentrated in the market’s heavyweight sectors. Automobile assemblers, cement companies, commercial banks, oil and gas exploration firms, and oil marketing companies all traded in the green.
Index-heavy stocks did most of the lifting. Lucky Cement, DG Khan Cement, HBL, MCB, Meezan Bank, National Bank, OGDC, Mari Petroleum and PSO were among the notable gainers.
The breadth of the rally suggested broad-based value buying rather than a narrow rotation. Investors who had reduced exposure on Monday appeared to be stepping back in, encouraged by calmer domestic politics and easing oil prices.
What changed overnight
Two factors shifted sentiment in favour of buyers. First, oil prices fell in Asian trading, putting them on course for their first decline in nearly a week. Traders weighed supply risks from the attacks on Saudi Arabia against the prospect of additional diesel supplies from Russia.
For Pakistan, a net oil importer, lower crude prices are a direct relief. Cheaper energy eases the import bill, supports the rupee, and gives the central bank more room on interest rates — all of which feed into equity valuations.
Second, the domestic political scene looked steadier than on Monday, when the emergency and governor’s rule in Khyber Pakhtunkhwa rattled investors. With no fresh political shock overnight, the market corrected some of the panic selling.
Context: a market still on edge
The rebound does not mean the pressure is gone. The IMF has just raised Pakistan’s inflation forecast to 9.9 per cent for FY27, and the global lender is pressing developing countries to cut spending as the Iran war energy shock bites.
Energy risk also remains high. Brent crude was trading near $105.90 a barrel, close to a two-week high, and investors continued to assess geopolitical developments in the Middle East and the Russia-Ukraine conflict. Any fresh strike on Gulf energy infrastructure would quickly reverse the oil-price relief that helped Tuesday’s rally.
Regional equity markets were mixed. Asian stocks faced losses as the widening Middle East conflict kept oil prices high, with South Korea’s KOSPI dropping sharply and Japan’s Nikkei losing ground after a holiday.
What to watch next
The durability of the rebound depends on two things: whether buying sustains through the week, and whether the political situation in Khyber Pakhtunkhwa stays calm. Monday’s 1,964-point drop showed how fast sentiment can turn when politics intrudes.
On the macro front, investors are also watching Finance Minister Muhammad Aurangzeb’s push for over $1 billion from privatisations and the government’s growth target of above 4 per cent. Fresh regulatory moves from the SECP add to the picture of an economy under close official management.
For now, the message from the trading floor is simple: the panic of Monday has eased, but confidence is still being rebuilt trade by trade.
FAQs
How much did the KSE-100 gain on October 13?
The benchmark KSE-100 index gained over 400 points in early trading on October 13, rising 558.25 points to 165,682.66 at 9:33am. By midday it was up 470.14 points at 165,594.55.
Why did the PSX fall on October 12?
The KSE-100 plunged 1,964.87 points on October 12 as investors reacted to the emergency and governor’s rule imposed in Khyber Pakhtunkhwa, alongside regional geopolitical tensions.
Which sectors led the October 13 rebound?
Automobile assemblers, cement, commercial banks, oil and gas exploration companies, and oil marketing companies. Heavyweights including Lucky Cement, HBL, MCB, OGDC and Mari Petroleum traded higher.
What is driving the market this week?
Falling oil prices in Asian markets and a calmer domestic political scene supported Tuesday’s gains. Investors are watching energy prices, the KP political situation, and IMF-related economic developments for direction.
