Karachi, March 3, 2026: The Pakistan Stock Exchange (PSX) rebounded sharply on Tuesday, gaining more than 5,000 points following Monday’s historic one-day decline of over 16,000 points triggered by escalating tensions in the Middle East.
The benchmark KSE-100 Index closed at 157,132.09 points, up 5,159.10 points, or 3.39%. During the session, the index touched an intraday high of 158,217.01, gaining 6,244.02 points (4.11%), and fell to a low of 151,258.85, down 714.14 points (-0.47%).
Monday had marked the PSX’s biggest ever single-day fall, with the index closing at 151,972.99, down 16,089.17 points (-9.57%).
“Market is rebounding as it had declined significantly yesterday [due to a correction],” said Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company.
Maaz Mulla of Topline Securities said that Tuesday’s gain was a technical rebound after panic-driven selling and the market ranking among the worst-performing global indices. “Value hunters stepped in as excessive pressure eased. The key now is whether this recovery gains follow-through or remains just a short-term bounce,” he added.
Despite the rebound in Karachi, global markets continued to face pressure. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.5%, led by a 4.1% drop in South Korean stocks. Tokyo’s Nikkei 225 declined 2.3%, while S&P 500 e-mini futures were down 0.6%.
Rupal Agarwal, Asia quant strategist at Bernstein in Singapore, noted: “Economic policy uncertainty was already elevated, and now with the Iran conflict, geopolitical risk is expected to rise. Last time both spiked was in 2022 during the Russia-Ukraine conflict, which didn’t work well for Asian markets.”
US President Donald Trump defended the broad campaign on Iran, describing it as ahead of expectations. Meanwhile, an official from Iran’s Revolutionary Guards announced the closure of the Strait of Hormuz to marine traffic, warning of attacks on any ships attempting to pass.
The announcement sent supertanker hire rates from the Middle East to China to record highs of over $400,000 per day, according to LSEG data. Oil and gas prices surged further on Tuesday, with Brent crude futures rising 2% to $79.22 per barrel. Benchmark European and Asian LNG prices had jumped around 40% on Monday.
Investors remain cautious as the geopolitical situation continues to influence energy markets and global economic sentiment.
