KARACHI: The Pakistan Stock Exchange (PSX) witnessed a strong bullish trend on Tuesday, as renewed optimism over possible diplomatic engagement between the United States and Iran fueled investor confidence.The benchmark KSE-100 Index opened on a positive note and recorded significant gains during early trading hours. By 9:39am, the index had climbed to 164,322.07, up by 3,730.74 points (2.32%).
The upward momentum continued, and by 12:34pm, it was trading at 164,782.58, marking an increase of 4,191.25 points (2.61%).The rally comes after expectations of a potential resumption of US-Iran talks, raising hopes of easing geopolitical tensions that have recently unsettled global financial markets. The improved sentiment contrasts sharply with the previous session, when the market suffered heavy losses due to stalled negotiations and a surge in oil prices, triggering widespread selling.Investors appeared to respond positively to the possibility of de-escalation, which could stabilize oil prices and reduce concerns over supply disruptions—key factors for Pakistan’s import-driven economy.
Gains were broad-based across major sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration, oil marketing companies (OMCs), power generation, and refineries. Market participants actively rebuilt positions following the recent downturn.Analysts, however, warned that volatility could persist, depending on the progress of diplomatic efforts. “Investors are optimistic about the likely resumption of talks between the US and Iran,” said AKD Securities Director Research Mohammed Awais Ashraf.He added that supportive signals from Saudi Arabia and Qatar to help bridge Pakistan’s external financing gap—amid a $3.5 billion payment to the UAE and rising import costs due to high oil prices—also contributed to improved market sentiment. This development may further support the timely approval of a $1.2 billion disbursement from the International Monetary Fund (IMF), pending executive board approval.
