The KSE-100 index recovered approximately 600 points on July 23, trading back toward the 175,000 level as buying interest returned to the Pakistan Stock Exchange following a steep two-session decline that had pulled the benchmark from its July 21 intraday high of 178,370 to a July 22 close of 174,429.92 (Business Recorder; Express Tribune).
The recovery was broad-based, with institutional and retail buying observed in oil marketing companies, cement, banking and selected industrial stocks. The return of buying interest came despite another significant OGRA fuel price hike — petrol rising Rs6.39 to Rs327.12 and diesel Rs7.83 to Rs375.04 — suggesting that at least part of the market views the current level as a buying opportunity rather than a signal of further deterioration.
The trajectory since July 21
The market’s recent path has been driven almost entirely by Gulf geopolitics. The July 21 surge of 2,442 points was driven by ceasefire mediation hopes. The July 22 sell-off — which closed the index at 174,429.92, down nearly 1,700 points from July 21’s close of 176,133.57 — reflected renewed pessimism as the mediation framework failed to materialise and fuel prices resumed their climb. July 23’s recovery is the third leg of a pattern that analysts have described as “war-trade volatility”: sharp moves up and down on news flow, with the underlying index still well above its pre-conflict level of mid-June.
The KSE-100 remains approximately 27 percent higher year-on-year despite the recent volatility, and closed FY26 with a 44 percent annual gain — the third consecutive year of outperformance against all major Pakistani asset classes.
Whether the July 23 recovery holds will depend on whether any new ceasefire signals emerge before the close. Absent fresh geopolitical catalysts, analysts expect range-bound trading in the 174,000–177,000 band for the near term.
