The Pakistan Stock Exchange (PSX) showed strong positive momentum on Tuesday as the KSE-100 Index gained nearly 650 points. At 11:40am, the benchmark index stood at 122,870.73, marking a 0.53% rise. This rise came as investors showed renewed interest in key sectors after a period of mixed trading.
Buying activity returned in major sectors such as automobiles, cement, oil and gas, commercial banks, and refineries. Index-heavy stocks like HUBCO, ARL, PSO, and MARI led the rally. This widespread buying pushed the market upward, reflecting growing investor confidence.
Meanwhile, the Monetary Policy Committee of the State Bank of Pakistan decided to keep the policy rate unchanged at 11%. The MPC said inflation in May was expected, though core inflation declined slightly. This decision also boosted market sentiment as it reduced uncertainty.
However, Monday’s session had closed with only a slight gain of 81.79 points. It showed a tug-of-war between bulls and bears, keeping traders cautious. But Tuesday’s recovery indicated that investors were ready to take positions again in the hope of market stability.
Globally, tensions rose due to the ongoing Israel-Iran conflict, pushing investors toward safe assets like gold and U.S. Treasuries. Oil prices surged more than 2%, while U.S. stock futures fell. Despite global unease, the PSX remained resilient and showed strong buying trends.