Pakistan Stock Exchange Rebounds as KSE-100 Gains Over 1,800 Points After Sharp Sell-Off

The benchmark KSE-100 index at the Pakistan Stock Exchange staged a strong recovery on Tuesday, gaining 1,804.59 points during intraday trading after suffering a major decline in the previous session.

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By 12:19pm, the index had risen 1.23% to reach 148,647.56 points, up from the previous close of 146,842.97.

The rebound comes a day after heavy selling pressure pushed the index below the 145,000 level intraday, with the market hitting a low of 144,656.97 before closing 4,864.54 points lower. The sharp decline was largely attributed to heightened geopolitical tensions, which have weighed on investor sentiment in recent weeks.

According to Ali Najib of Arif Habib Ltd, the market has witnessed repeated Monday sell-offs since early February, reflecting cautious investor behavior and increased volatility driven by global uncertainties.

Despite the recent turbulence, sentiment received some support after the International Monetary Fund (IMF) reached a staff-level agreement with Pakistan for the release of pending funds under its ongoing programmes.

Analysts said the development could help stabilise investor confidence, although market participants remain cautious amid evolving geopolitical risks.