PSX Rally: KSE-100 Surges Nearly 5,500 Points on Remittances, Lower Oil Prices

KARACHI: The Pakistan Stock Exchange (PSX) staged a strong recovery on Tuesday, with the benchmark KSE-100 Index climbing 5,448.56 points as investors returned to the market after a long weekend. Robust remittance inflows, falling international oil prices and improving geopolitical sentiment supported the PSX rally.

The benchmark index closed at 179,335.24 points, gaining 3.13% from its previous close. It remained in positive territory throughout the session, reaching an intraday high of 179,424.04 points and a low of 176,273.72 points.

The market had remained closed on Monday for Iqbal Day. Following the reopening, the index surged 2,852.32 points, or 1.64%, within minutes of the opening bell, signalling strong buying interest.

Improved sentiment surrounding Pakistan’s external account, supported by healthy remittance inflows, strengthened investor confidence. Lower global crude oil prices also supported the market, as Pakistan relies heavily on imported energy and remains vulnerable to higher fuel costs, inflation and pressure on its balance of payments.

International oil prices extended their decline on Tuesday after US President Donald Trump played down the prospect of further military action against Iran, easing concerns about prolonged supply disruptions in the Middle East.

The decline in crude prices also reflected expectations of an adequately supplied global market, reducing concerns about sustained pressure on energy costs.

Ali Najib of Arif Habib Limited (AHL) said the PSX extended its bullish momentum for another session, decisively reclaiming the psychological 175,000-point level.

He attributed the market’s gains to a sharp correction in international oil prices following significant Democratic gains in the US midterm elections. According to Najib, WTI crude fell below $87 per barrel, while Brent declined to around $96 from $102 in the previous session.

Najib said lower oil prices encouraged broad-based buying, helping the benchmark index cross the 175,000-point threshold for the first time since September 1, 2026.

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He added that the US election outcome fuelled hopes of de-escalation in the Middle East conflict, easing geopolitical concerns and improving global risk appetite.

From the index contribution perspective, United Bank Limited (UBL), Lucky Cement, Meezan Bank, Systems Limited, Engro Holdings, Bank AL Habib, Habib Bank Limited, Hub Power, Oil and Gas Development Company and Pakistan Petroleum Limited led the gains, collectively contributing around 1,981 points.

Najib expects the market to maintain its positive momentum amid lower oil prices and improved international sentiment. However, he cautioned that profit-taking at higher levels could lead to selective trading.

Topline Securities also reported improved investor confidence, citing falling international oil prices and reduced concerns about a possible escalation in US-Iran tensions.

UBL, Fauji Fertiliser Company, Hub Power, Lucky Cement and Meezan Bank were the leading positive contributors, adding approximately 1,982 points to the benchmark index.

Despite the sharp rise in the index, overall trading volume declined to 972.4 million shares from 1.47 billion shares recorded on Friday. The value of traded shares stood at Rs50.6 billion.

Shares of 501 companies changed hands during the session. Of these, 363 advanced, 107 declined and 31 remained unchanged.

Cnergyico PK led trading volumes with 70 million shares, although its stock fell Rs0.75 to close at Rs11.35.

Foreign investors purchased shares worth Rs1.68 billion, according to the National Clearing Company of Pakistan.