KARACHI: The Pakistan Stock Exchange (PSX) on Tuesday staged a marginal recovery rally as investors rushed to hunt for value, helping the benchmark KSE-100 index close in the green zone and snap a persistent bearish spell despite elevated tensions in the Middle East and high oil prices.
Topline Securities Ltd said the index rebounded strongly, gaining 1,421.67 points, or 0.85 per cent, to close at 169,392.33, thereby recovering part of the previous session’s sharp losses.
The rebound followed Monday’s 2,541-point decline, as geopolitical tensions and crude oil prices above $100 per barrel continued to weigh on investor sentiment.
Meanwhile, the unchanged State Bank of Pakistan policy rate, the recent record $3 billion Eurobond issuance, and improved foreign exchange reserves to around $21.4bn provided a supportive backdrop.
United Bank, Fauji Fertiliser, Lucky Cement, Bank Alfalah, and Pakistan Services Ltd were among the key contributors, collectively adding approximately 640 points to the benchmark. Conversely, Meezan Bank, Javedan Corporation Ltd, and Sazgar Engineering Works were the major drags, collectively wiping out 179 points.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), said investors opted for selective buying across assemblers, cement, commercial banks, E&Ps, refineries, power and OMCs, following the status quo in the monetary policy stance being maintained at 11.5pc.
On the corporate front, Mughal Iron and Steel Industries Ltd announced its FY26 results, reporting a 2.6-fold year-on-year increase in profit to Rs2,487 million, translating into earnings per share of Rs7.41, compared with Rs966m (EPS Rs2.88) in the same period last year.
AHL attributed the growth to improved gross margins, lower finance costs and higher other income. However, fourth-quarter EPS fell 29pc year-on-year to Rs1.08. The company also announced a dividend of Rs2 per share after a two-year gap, in line with its historical payout of 27pc.
Investor participation weakened sharply as trading volume plunged 34.78pc to 372m shares and total traded value dipped 30.24pc to Rs17.1bn. Cnergyico PK topped the volume chart with 56.2m shares.
Analysts expect market activity to stay volatile, with targeted profit-taking and stock-specific moves during the ongoing earnings season. Geopolitical developments and rising oil prices will continue to be key factors influencing market direction.
Published in Dawn, September 16th, 2026
