The Pakistan Stock Exchange (PSX) stretched its positive momentum on Tuesday, with the benchmark KSE-100 index rising by 860 points, or 0.46%, to close at an all-time high of 188,621.78 on the back of improved investor sentiment.

The market remained active throughout the session, supported by sustained buying interest. However, trading was marked by volatility, as the index moved between an intraday high of 188,958.38 and a low of 187,192.02. Despite intermittent profit-taking, the index managed to hold gains and finish in positive territory.

Market sentiment remained constructive, underpinned by easing geopolitical concerns, improving macroeconomic indicators, and expectations of a potential policy rate cut. Buying from local mutual funds, as reflected in recent flow data, played a key role in supporting the market’s upward trend.

Overall, investor participation stayed firm, with selective institutional interest helping the market absorb deep swings and close higher.

KTrade Securities wrote in its market wrap that the PSX extended its bullish momentum during today's trading session. Market participation improved, with all-share traded volumes rising 2.3% DoD to 1,226 million shares.

Select stocks drew interest on the back of recent corporate developments, including exploration updates in the E&P space and new launches in autos, while broader participation reflected a renewed inclination toward blue-chip stocks.

Heavy stocks such as Engro Holdings, Pakistan Petroleum, Sazgar Engineering, Oil and Gas Development Company and Pakistan State Oil collectively added 661 points to the index. Going forward, the market remains sensitive to external developments, and any renewed geopolitical escalation could introduce near-term volatility, KTrade predicted.

Overall trading volume increased to 1.225 billion compared with Monday’s figure of 1.19b. Value of traded shares stood at Rs63.8b. Shares of 487 companies were traded. Of these, 340 rose, 213 declined and 34 remained unchanged. Hascol Petroleum was the volume leader, with trading in 113m shares, rising Rs2.5 to close at Rs27.47.