Pakistan stocks witness recovery thanks to cautious sentiments

KARACHI: The Pakistan Stock Exchange (PSX) on Tuesday rebounded with some intraday volatility, as investors remained cautious ahead of the FY26 budget, analysts said.

The benchmark KSE 100 Index rose 111.78 points or (0.09 per cent) closing at 118,332.09.

“A wait and see approach dominated sentiment, with participants largely staying on the sidelines in the absence of clear market moving triggers,” Ismail Iqbal Securities stated.

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The stock market saw a range-bound session, with the benchmark index moving within a confined band due to rollover pressures and uncertainty surrounding the upcoming budget. It touched an intraday high with a 587-point gain while turning red with by losing 77 points before settling at 118,333 points.

It means the KSE-100 Index was up by 111.78 points or 0.09 per cent by the time the trading was closed.

Some stocks showed recovery amid speculations, as the hopes for a real estate package in the federal budget led cement stocks.

“Investor concerns over IMF disagreement over key budgetary target, subsidies and rupee instability invited mid-session pressure,” Ahsan Mehanti CEO Arif Habib Commodities said.

Government measures for raising tax collection easing fiscal deficit played a catalyst role in the positive closing at PSX, he added.

Notable contributions from MEBL (Meezan Bank), SYS (Systems Limited), PKGP (Pakgen Power), PPL (Pakistan Petroleum), and DGKC (DG Khan Cement) drove the positive sentiment, which together added 223 points to the benchmark index.

Meanwhile, the overall market activity remained upbeat, with the total trading volume hitting 689 million shares and a value of Rs23.8 billion. KEL (K-electric) dominated the volumes, with 267 million shares changing hands.