The Pakistan Stock Exchange (PSX) staged a strong recovery on Wednesday, with the benchmark KSE-100 Index gaining more than one per cent after suffering one of its steepest single-day declines in the previous session.

The benchmark index closed at 175,285.78, up 1,766.97 points, or 1.02%, recovering part of the losses recorded over the past two trading sessions.

The market opened on a strong footing and quickly climbed to an intraday high of 176,701.38 on aggressive buying. However, profit-taking erased much of the early gains, dragging the index to an intraday low of 173,870.27 around midday.

Buying interest returned in the afternoon session, helping the benchmark regain momentum and finish firmly in positive territory.

Heavyweight stocks UBL, Engro Holdings, National Bank of Pakistan, Meezan Bank and HBL led the rally, collectively contributing around 906 points to the index’s overall gain.

Market activity remained robust, with 583 million shares changing hands and total traded value reaching approximately Rs26.04 billion.

The rebound came a day after the PSX witnessed one of its worst trading sessions, when the KSE-100 Index plunged 6,408.23 points, or 3.56%, to close at 173,518.82.

Tuesday’s sharp decline was driven by panic selling as escalating tensions between the United States and Iran rattled global markets and raised concerns over potential disruptions to oil supplies.