The Pakistan Stock Exchange (PSX) benchmark index reversed a two-day decline on Wednesday, climbing more than 1,000 points during early trade.
The sharp intraday rally marks a decisive shift in sentiment, with bulls regaining control after a period of sustained selling pressure.
The recovery follows a volatile period for the Karachi Stock Exchange, where the benchmark had previously staged dramatic turnarounds, including a surge of over 2,500 points in earlier sessions.
Analysts attribute the rebound to renewed value buying, with investors returning to the market after heavy selloffs.
Mettis Global noted that investor sentiment has turned positive, citing a reduction in geopolitical risk as a key driver.
Specifically, the firm pointed to the United States stepping back from imposing fees related to the Strait of Hormuz, which has alleviated concerns over shipping disruptions and energy costs.
The recovery follows a volatile period for the Karachi Stock Exchange, where the benchmark had previously staged dramatic turnarounds, including a surge of over 2,500 points in earlier sessions.