The Pakistan Stock Exchange witnessed a record-breaking performance on Tuesday, marking the second highest single-day surge in its history.

During the session, the benchmark index soared by more than 7,400 points, an unprecedented rise after six consecutive days of decline. At the close of trading, the Hundred Index climbed by 7,033 points, settling at 165,476 points. The rally restored seven key thresholds – 159,000, 160,000, 161,000, 162,000, 163,000, 164,000 and 165,000 points – in a single day.

Market activity surged alongside the index. A total of 1.18 billion shares changed hands, with the day's trading volume reaching Rs 60 billion.

Market analysts attributed the turnaround to renewed interest from financial institutions and investors, following signs of stability in both global and domestic economic conditions.

The intensity of the rise was such that the market crossed successive resistance levels without pause, prompting comparisons to a vehicle shifting into top gear.

Earlier, the PSX witnessed a powerful rebound on Tuesday, with the benchmark KSE-100 Index jumping by more than 4,000 points during the opening minutes of trading, restoring multiple key levels and signaling renewed investor optimism.

After six consecutive sessions of heavy losses, trading at the PSX began on a bullish note. At 9:55 AM, the KSE-100 Index was recorded at 162,474.10 points, marking a rise of 4,030.68 points (2.54%).

The surge restored the 159,000, 160,000, 161,000, and 162,000-point thresholds, which were breached during last week’s sell-off. The strong opening was fueled by investor confidence following signs of political stability and a slight easing in geopolitical tensions.

Across-the-board buying lifts major sectors

Analysts observed broad-based buying across key sectors such as automobile assemblers, cement, commercial banks, oil and gas exploration, OMCs, power generation, and refineries.

Prominent gainers included HUBCO, ARL, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL, and WAFI, all trading in the green.

Saad Hanif, Head of Research at Ismail Iqbal Securities, told Business Recorder that the buying spree was driven by “reduced political noise” and improved confidence after Monday’s sharp correction.

The strong rebound followed a turbulent session on Monday when the market plunged by 4,654.77 points (2.85%), closing at 158,443.42 points. The sell-off was mainly attributed to widespread profit-taking and weak investor sentiment amid political uncertainty.

Tuesday’s rally suggests that traders are viewing the dip as a buying opportunity, especially in value stocks that had corrected sharply over the past week.

Global market influence

Global cues also played a role in shaping sentiment. Asian markets saw mixed movements on Tuesday amid cautious optimism about upcoming US-China trade talks.
While early gains in Hong Kong and mainland China faded, Wall Street’s strong overnight performance offered some support to emerging markets.

The S&P 500 had closed 2.2% higher, led by tech and chip stocks, after US President Donald Trump adopted a softer tone toward China.
However, uncertainty remains, as global investors await more clarity on potential tariff rollbacks following last week’s abrupt 100% tariff announcement.

Market experts believe the PSX’s recovery could continue if political calm persists and global markets stabilize. However, they warn that volatility may return if geopolitical or policy uncertainties resurface.

The benchmark’s sharp swing underscores the sensitivity of investor sentiment to both local and international developments — a reminder that Pakistan’s equity market remains reactive to fast-moving news cycles.