Trading began on a positive note, with the index gaining as many as 3,100 points, before slipping slightly while remaining in the green. According to Topline Securities, the stock market witnessed a “highly volatile session” amid “mounting geopolitical uncertainty”. “Market participants remained fixated on the anticipated second round of negotiations between the US and Iran, expected to commence in Pakistan, while conflicting signals and rising tensions kept sentiment on edge,” Topline Securities said in its daily market review.

However, it added that “despite the jittery backdrop, the benchmark index displayed notable resilience, surging to an intraday high of 3,101 points before settling at 173,155—up 959 points (+0.56pc)”. It continued: “The choppy price action highlighted a classic tug-of-war between bullish momentum and risk aversion, as investors weighed hopes of diplomatic progress against the risk of further escalation”. Topline Securities further said that heavyweights, including Meezan Bank Limited, United Bank Limited, Pakistan State Oil Company Limited, Bank AL Habib Limited, and Attock Refinery Limited, “collectively contributed 757 points to the benchmark’s advance, underscoring the index-heavy nature of the rally and continued institutional interest in blue-chip names”.

It added that throughout the session, market activity was “vibrant”. Total trade volumes clocked at 1,165 million shares with a turnover of Rs54.9 billion, the statement said, adding that it reflected “improved depth and broader participation”. “CNERGY led the volume chart, with 83m shares traded, signalling sustained retail interest in low-priced plays,” Topline Securities said in its market review.

The bullish momentum also followed the State Bank of Pakistan’s (SBP’s) confirmation of it recieving $1 billion from Saudi Arabia as the second tranche of a $3bn deposit. On Monday, the market plunged by over 1,700 points, failing to sustain last week’s bullish spell as fears of the economic fallout from the ongoing Middle East conflict resurfaced. The potential second round of US-Iran talks in Islamabad, expected within the next two days, as per media reports, remains a key catalyst for market direction.

While a US delegation is expected to arrive in Islamabad, Iran has yet to reach a final decision on its participation, saying it cannot negotiate under “shadow of threats”. Sentiment is likely to remain broadly supportive but highly sensitive to headlines, with incremental developments expected to drive near-term momentum and investor positioning.