KARACHI: Positive momentum returned to the Pakistan Stock Exchange (PSX) on Tuesday, with the benchmark KSE-100 Index closing with a gain of over 750 points.

The market remained range-bound in the initial hours of trading but gained momentum in the final session, reaching an intra-day high of 112,877.01. At close, the KSE-100 Index settled at 112,743.79, reflecting an increase of 756.91 points or 0.68%. Buying was observed in key sectors, including automobile assemblers, commercial banks, fertilizer, power generation, and refineries. Index-heavy stocks, such as HUBCO, NRL, PRL, OGDC, PPL, MCB, and MEBL, traded in the green, contributing to the overall market recovery.

In a key development, the International Monetary Fund (IMF) mission began discussions with Pakistani authorities on the first review of the $7 billion Extended Fund Facility (EFF) programme on Monday. Official sources in the Finance Ministry confirmed that a nine-member IMF mission, led by Nathan Porter. , met with the government's economic team, headed by Secretary Finance. The mission is expected to stay in Pakistan for approximately two weeks. The discussions are structured in two phases: an initial technical review, followed by policy-level negotiations.

The sources also indicated that the upcoming 2025-26 budget, currently under formulation, will be reviewed during the talks. The IMF mission will assess Pakistan's economic performance from July to December 2024, and a successful review could unlock the next $1 billion tranche under the programme. On Monday, the PSX had witnessed selling pressure, with the benchmark KSE-100 Index plunging nearly 1,300 points to settle below the 112,000 level. However, renewed investor confidence led to a strong rebound in Tuesday's session.

Globally, stock markets remained under pressure amid trade war concerns. Asian markets slumped as investors braced for the implementation of new U.S. tariffs on Canada, Mexico, and China. Technology stocks faced significant selling pressure, leading Japan's Nikkei to drop 2.2% and Taiwan's benchmark index to decline by 1.3%. In Hong Kong, the Hang Seng Index fell 1.8%, with a sub-index of tech shares tumbling 2.9%. Mainland Chinese blue-chip stocks also recorded losses of 0.7%. Asian equities tracked Wall Street's worst session of the year, with the S&P 500 sliding 1.8% and the tech-heavy Nasdaq dropping 2.6%.

However, U.S. futures pointed slightly higher by about 0.1%, indicating that the sell-off may ease later in the global trading day. Meanwhile, European markets appeared set for a weak opening, with STOXX 50 futures down by 1%.