PSX surges as global markets regain their footing after US tariff turmoil

• KSE-100 index closed at 115,532.43 after gaining 622.95 points.
• Analysts say tariffs wreaked havoc, but knee-jerk reaction passed.
• Say bottom may not be in yet, but wholesale selling halted for now.
  

The capital market surged on Tuesday, recouping strongly from Monday’s bloodbath, as investors responded positively to signs of stabilisation in global markets and regained confidence in the local economy.

The Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index gained 622.95 points, or 0.54%, to close at 115,532.43 after touching an intraday high of 116,424.35 and a low of 115,560.90.

“Markets are recovering on the back of [a] rebound in global markets. The tariff played havoc, and the knee-jerk reaction has ended,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.

“The markets have now had 4–5 days to digest the news and will adjust accordingly. The bottom may not be in yet, but the indiscriminate selling is done for the time being,” he added.

He further said: "The visit of a delegation to look into Pakistan's mining sector is also creating interest in particular stocks."

Investor sentiment was further buoyed by the opening of the Pakistan Mineral Investment Forum 25 (PMIF25) in Islamabad, where Federal Minister for Petroleum and Natural Resources Ali Pervaiz Malik showcased the country’s untapped mineral resources across 600,000 square kilometres.

The two-day forum, which runs from April 8–9, is attended by around 2,000 participants, including 300 foreign delegates. Representatives from the US, Saudi Arabia, China, Türkiye, Azerbaijan, and other countries — as well as financial institutions like the US Exim Bank and the Asian Development Bank — are participating. Several investment agreements and MoUs are expected to be signed during the event.

Meanwhile, diplomatic momentum picked up after US Secretary of State Marco Rubio held a call with Deputy Prime Minister and Foreign Minister Ishaq Dar on Monday. The two discussed Washington’s recent imposition of a 29% tariff on Pakistani goods and agreed to work towards a fair and balanced trade relationship.

According to a statement from the Foreign Office, Dar reiterated Pakistan’s commitment to strengthening its partnership with the US, particularly in the areas of trade, investment, and counterterrorism.

The US side reportedly expressed interest in expanding commercial opportunities, including engagement in Pakistan’s critical minerals sector.

The rebound follows a steep decline on Monday, when the KSE-100 Index plunged by 3,882 points (-3.27%), amid global sell-offs triggered by concerns over new US trade tariffs. The index had touched a day’s low of 110,103.98 before closing at 114,909.49.