KARACHI, October 26, 2026: The Pakistan Stock Exchange (PSX) staged a strong recovery on Monday, with the benchmark KSE-100 Index gaining 663 points to close at 163,038, ending a three-session losing streak despite lower trading volumes.
The market opened the new trading week under selling pressure as investors anticipated a possible interest rate increase ahead of the State Bank of Pakistan’s monetary policy announcement.
During intraday trading, the benchmark index plunged by more than 1,000 points, falling to 161,250 before recovering sharply as renewed buying interest helped reverse earlier losses.
The index eventually settled at 163,038 points, reflecting improved investor sentiment following a volatile trading session.
According to market sources, reports suggesting an improvement in geopolitical conditions contributed to the recovery, encouraging investors to return to equities after three consecutive sessions of negative closing.
Despite the positive movement in the benchmark index, overall trading activity remained subdued.
Approximately 370 million shares changed hands during the session, with the total traded value reaching Rs16 billion.
Meanwhile, the market’s total capitalisation increased by Rs46 billion to Rs18.061 trillion, reflecting gains in the overall value of listed companies.
The recovery came amid uncertainty surrounding monetary policy, with investors closely monitoring developments related to interest rates, inflation and broader economic conditions.
The sharp intraday reversal highlighted continued volatility in the equity market, where concerns over borrowing costs and economic pressures remained significant factors influencing investor decisions.
Monday’s positive close provided some relief to investors following three consecutive sessions of losses, although relatively modest trading activity suggested that market participants remained cautious.