The Pakistan Stock Exchange (PSX) staged a strong comeback on Tuesday, recovering more than 2,000 points after suffering its steepest one-day decline in history.

The benchmark KSE-100 Index climbed to an intraday high of 156,106.01, gaining 4,133.02 points (2.72%) from the previous close of 151,972.99.

However, volatility persisted, with the index also dipping to an intraday low of 151,258.85, reflecting continued investor caution.

After Monday’s Historic Slump

The rebound follows Monday’s massive crash, when the KSE-100 plunged 16,089.17 points (-9.57%), marking its largest single-day fall ever.

The sell-off was triggered by escalating Middle East tensions and panic-driven mutual fund selling.

Analysts described Tuesday’s rise as a technical rebound, with value investors stepping in after excessive pressure eased.

Global Markets Under Pressure

While PSX showed recovery, global markets remained under strain:

MSCI Asia-Pacific index (ex-Japan) fell 1.5%

Japan’s Nikkei dropped 2.3%

US futures slipped 0.6%

Rising geopolitical tensions have intensified concerns about energy prices and global economic stability.

Oil Prices Surge

Fears of disruption in the Strait of Hormuz pushed energy markets higher:

Brent crude rose 2% to $79.22 per barrel

Shipping costs for oil tankers surged sharply

European and Asian natural gas prices jumped nearly 40% earlier

Higher oil prices pose inflationary risks for import-dependent economies like Pakistan.

What’s Next?

Market experts say the key question is whether the recovery gains momentum or remains a short-term bounce.

Investor sentiment remains fragile amid geopolitical uncertainty and volatile global energy markets.