The Pakistan Stock Exchange (PSX) staged a significant rebound on Tuesday, marking a reversal of the recent corrective sessions, as investors returned to build fresh positions. The benchmark KSE-100 index closed near 184,000, with a gain of over 1,500 points.

Earlier, trading opened on a cautious note, when the index edged higher briefly before coming under pressure. Ahead of midday, profit-taking pushed the index down to the intra-day low of 180,590. Market momentum improved in the latter half as buying interest strengthened across the board. The index moved steadily higher, touching the intra-day peak of 184,305, before settling slightly lower.

KTrade Securities mentioned that the PSX staged a strong rebound, with the KSE-100 index closing at 183,952, up 1,567 points (+0.86%), marking a clear reversal after recent corrective sessions. Early-session selling pressure was effectively absorbed by retail and selective institutional buying, allowing momentum to build decisively in the second half, it said.

The index traded within a range, hitting the intra-day low near 180,590 and the high of 184,305, while volumes clocking in at 437 million shares. Sector-wise, the rally was broad-based, led overwhelmingly by commercial banks, which contributed most points to the index.

Support also came from oil & gas, cement and technology stocks, reinforcing the strength of the move. Among individual shares, UBL, National Bank, MCB Bank, Lucky Cement, Meezan Bank, PTCL, OGDC and Pakistan Petroleum were the major gainers. The momentum is expected to continue, subject to developments on the geopolitical front, particularly the Iran-US tensions. Barring any external shocks, the outlook for the PSX remains positive, KTrade remarked.

Arif Habib Limited Deputy Head of Trading Ali Najib wrote that consolidation continued at the PSX on Tuesday as the KSE-100 closed at 183,952, up 1,567 points. The market experienced notable intra-day volatility, hitting a high of 184,305 and a low of 180,590. However, value buying emerged at lower levels, enabling the index to settle in the positive territory, he said.

On the diplomatic front, Indonesia’s defence minister met Pakistan’s air force chief in Islamabad to discuss a potential defence deal, including the sale of combat jets and drones. This follows reports of growing international interest in Pakistan’s defence exports, a major positive for the overall economy and the perception.

The PSX recovery was led by banks and cement stocks, which collectively added 938 points, while Fauji Fertiliser, Sazgar Engineering and Haleon Pakistan weighed on the performance, erasing 157 points. The consolidation phase may persist within the 180-187k range amid geopolitical uncertainty, while any pullback is likely to be treated as a buying opportunity, given strong underlying fundamentals, Najib said.