A day after intense selling pressure, buying momentum returned at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining over 1,900 points on Tuesday.
The market opened on a weaker note, hitting an intra-day low of 147,743.67, indicating profit-taking or cautious sentiment. However, the decline was short-lived as buyers quickly stepped in, pushing the index back toward the 149,000 mark.
After 1pm, the index rallied strongly, crossing the 150,000 level and hitting the day’s high of 150,225.63. However, the rally could not sustain at higher levels, and the index pulled back in the final hour.
At close, the benchmark index settled at 148,743.31, up by 1,900.34 points or 1.29%.
“Reports indicate US President Donald Trump is signalling a willingness to end the military campaign against Iran, even if the Strait of Hormuz remains partially restricted,” said Behtari Capital.
“This de-escalation hint has sent US futures higher and calmed local fears of an all-out regional war,” it added.
Arif Habib Ltd’s Deputy Head of Trading Ali Najib said market participants engaged in fresh buying, driven by expectations of a favorable outcome from a press conference by the United States Department of War on Tuesday.
“On the macro front, the State Bank of Pakistan continued its active presence in the foreign exchange market, undertaking cumulative net interventions of $12.4bn between Jun’24 and Dec’25, including $1.0bn in Dec’25 alone, underscoring its commitment to maintaining currency stability and strengthening reserve buffers,” he said.
“March 2026 proved to be a deeply adverse period for equities, with the KSE-100 Index registering a sharp decline of 19,319 points (-11.5% MoM) to close at 148,743.”
On Monday, PSX remained under heavy selling pressure, extending its losing streak for a fourth consecutive Monday as geopolitical tensions over the weekend and cautious investor participation dragged the Index. The KSE-100 Index closed at 146,842.97 points, shedding 4,864.54 points or 3.21%.
Globally, oil prices on Tuesday were set for a record monthly rise while Asian shares were headed for their steepest fall since 2022, capping a tumultuous month as the war in the Middle East stoked fears of higher inflation and slower growth.
Bonds were headed for their largest decline in months, owing to the hawkish sea change in the global outlook for interest rates, while the dollar recorded its strongest gain in eight months.
A month into the war, investors continue to be whipsawed by a barrage of headlines as tensions and attacks between the U.S., Israel and Iran escalate.
Markets turned a little more upbeat after The Wall Street Journal reported that US President Donald Trump told aides he is willing to end the military campaign against Iran even if the Strait of Hormuz remains largely closed.
US futures reversed early losses, with Nasdaq futures up 0.34% and S&P 500 futures gaining 0.4%.
EUROSTOXX 50 futures rose 0.15%, and DAX futures were up 0.26%.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.55% and on track for a monthly fall of more than 12%, the most substantial decline since September 2022.
Japan’s Nikkei was down 0.93% and was set to lose 12.6% this month, while South Korea’s Kospi was headed for a monthly decline of more than 17%, the most since 2008.
Meanwhile, the Pakistani rupee registered marginal gain against the US dollar in the inter-bank market on Tuesday. At close, the local currency settled at 279.15, a gain of Re0.01, against the greenback.
Volume on the all-share index decreased to 434.96 million from 529.13 million recorded in the previous close.
The value of shares declined to Rs22.54 billion from Rs29.60 billion in the previous session.
K-Electric Ltd was the volume leader with 46.92 million shares, followed by Dost Steels Ltd with 36.12 million shares, and WorldCall Telecom with 27.97 million shares.
Shares of 479 companies were traded on Tuesday, of which 281 registered an increase, 137 recorded a fall, and 61 remained unchanged.
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