PSX stages partial recovery on value-hunting

The Pakistan Stock Exchange (PSX) experienced a modest recovery on Tuesday, as investors sought value amid heightened Middle East tensions and high oil prices. The benchmark KSE-100 index closed in the green zone, marking a partial rebound after a series of sharp losses. The index climbed 1,421.67 points, or 0.85%, to close at 169,392.33, partially offsetting Monday's 2,541-point decline.

This recovery was driven by a mix of factors, including the State Bank of Pakistan's unchanged policy rate, the successful issuance of a $3 billion Eurobond, and improved foreign exchange reserves nearing $21.4bn. Key contributors to the rally included United Bank, Fauji Fertiliser, Lucky Cement, Bank Alfalah, and Pakistan Services Ltd, collectively adding about 640 points.

However, Meezan Bank, Javedan Corporation Ltd, and Sazgar Engineering Works were among the top drag stocks, collectively responsible for a 179-point loss. Investors showed selective buying across various sectors, including assemblers, cement, commercial banks, E&P, refineries, power, and OMCs. The corporate front witnessed notable growth at Mughal Iron and Steel Industries Ltd, which reported a significant 2.6-fold increase in profit for FY26, reaching Rs2,487 million or an earnings per share of Rs7.41.

Despite this positive outlook, investor participation weakened with trading volumes plummeting by 34.78% and the total traded value dropping 30.24%. The market remains subject to volatility, with geopolitical developments and rising oil prices expected to continue influencing market direction.