The Pakistan Stock Exchange rebounded on Tuesday after a sharp early decline, with the benchmark KSE-100 Indexclosing in positive territory as investors navigated geopolitical uncertainty and pressure on foreign exchange reserves.
The market opened on a weak note, with the KSE-100 plunging over 2,000 points in early trading to an intraday low of 149,140.57. However, sentiment improved in the latter half of the session, driving a recovery that pushed the index to a high of 152,013.05.
By the close, the benchmark index settled at 151,673.45, posting a gain of 465.64 points, or 0.31%.
Analysts attributed the day’s volatility to a mix of domestic and global factors. Investors remained cautious ahead of a US deadline related to Iran, while concerns also mounted over pressure on Pakistan’s foreign exchange reserves due to upcoming repayments worth $3.5 billion to the United Arab Emirates.
Reports suggest the government is exploring external financing options, including potential support from China and Saudi Arabia, to manage a growing financing gap.
The latest session follows Monday’s volatile trading, when the market experienced sharp swings before closing higher, with the KSE-100 settling at 151,207.82 points, up 809.10 points.
Globally, investor sentiment remained fragile as tensions in the Middle East continued to disrupt oil flows through the Strait of Hormuz, a critical energy supply route. The situation has contributed to elevated oil prices and renewed inflation concerns.
In the commodities market, Brent crude rose 0.4% to $110.19 per barrel, while US West Texas Intermediate gained 0.8% to $113.31.
Asian markets were mixed, with MSCI’s Asia-Pacific index excluding Japan rising 0.4%, while Japan’s Nikkei slipped 0.2%. Meanwhile, US stock futures declined 0.55%, while European futures indicated a higher opening following recent holidays.
