A volatile session unfolded at Pakistan Stock Exchange (PSX) on Tuesday, as the benchmark KSE-100 index swung sharply between gains and losses before closing in positive territory above the 150,000 mark.

The market opened on a strong footing, with aggressive buying interest pushing the index to an intra-day high of 151,503.47, reflecting early bullish sentiment. However, the momentum proved short-lived as profit-taking and selling pressure dragged the index down to a session low of 148,509.05, highlighting heightened uncertainty among investors.

Throughout the day, the index remained highly volatile, moving within a wide range as investors alternated between buying and selling. Notably, around 11am, the index was seen trading at 149,861.50, up by 682.84 points or 0.46%, underscoring a positive undertone amid the fluctuations. 

Despite the mid-session pressure, the market showed signs of resilience, with buying interest re-emerging and select stocks helped the market regain ground.
By the close, the KSE-100 Index registered a gain of 837.50 points, or 0.56%, settling just above the 150,000 level at 150,016.16.

KTrade Securities wrote in its market wrap that the benchmark KSE-100 index staged a modest recovery, closing at 150,016 points, up 837 points (+0.56% DoD), snapping the recent streak of negative sessions as selective buying emerged in blue-chip names. Sentiment was supported by positive overnight cues from US and Asian markets in the morning, helping the index regain some footing despite underlying caution. 

Read: PSX tumbles over 4,600 points in pre-Eid sell-off

Market activity remained relatively subdued, with volumes at 145million shares, reflecting typical pre-Eid softness as investors trimmed positions and largely stayed on the sidelines ahead of the holidays commencing Friday. The muted participation suggested that the day’s upside was driven more by selective institutional flows rather than broad-based buying. 

On the contribution front, gains were led by heavyweight sectors including commercial banks, oil & gas, power, and investment companies. Key index movers included MCB, UBL, Hub Power, Pakistan Petroleum, Engro Holdings, and Pakistan State Oil, while some pressure was observed in stocks such as HBL, NBP and DG Khan Cement, limiting overall upside. 

Looking ahead, KTrade expected the market to remain range-bound in the near term as investors weigh positive global cues against persistent concerns over elevated oil prices, with Brent hovering above $100/bbl. Strategy-wise, preference remains for banks, supported by rising T-bill yields and expectations of a potential 100 basis points increase in interest rates, along with selective exposure to oil & gas and high dividend-yielding stocks, while avoiding cyclicals and speculative plays until greater clarity emerges