The Pakistan Stock Exchange (PSX) made a slight recovery after witnessing heavy selling on Monday as the benchmark KSE-100 Index gained over 400 points on Tuesday.
At close, the benchmark index settled at 171,021.77, an increase of 421.57 points or 0.25%.
Investors showed interest in major sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation firms, and refineries.
The recovery came a day after the market suffered a steep decline. On Monday, the PSX began June on a bearish note as investor sentiment remained weak amid uncertainty surrounding the absence of a breakthrough in United States-Iran peace negotiations over the weekend. The uncertainty triggered widespread profit-taking and selling pressure across key sectors.
As a result, the benchmark KSE-100 Index experienced a volatile trading session and ended the day sharply lower, shedding 3,362.62 points, or 1.93%, to close at 170,600.20 points.
Meanwhile, a new survey released by the Overseas Investors Chamber of Commerce and Industry (OICCI) highlighted a deterioration in business confidence across Pakistan during the second quarter of 2026.
According to the findings of the OICCI Business Confidence Index (BCI) Survey Wave 29, overall business sentiment declined by nine percentage points to a positive 13%, compared to 22% recorded in the previous survey wave.
The survey attributed the decline largely to escalating geopolitical tensions in the Middle East, which have disrupted supply chains, increased cost pressures, and negatively affected investment plans.
