Investor confidence returns as easing Middle East tensions and macroeconomic optimism fuel broad-based rally on Pakistan Stock Exchange
The benchmark KSE-100 Index surged sharply on Thursday, gaining 3,683 points as investor sentiment improved on hopes of easing geopolitical tensions in the Middle East.
The index closed at 168,514 points, compared with the previous day’s close of 164,831 points, according to market data from the Pakistan Stock Exchange.
Market participants said the rally was driven by renewed buying interest across key sectors, with both institutional and retail investors returning after recent volatility.
The KSE-100 opened on a positive note but experienced brief early fluctuations, dipping to intraday lows near 166,639 points before strong buying momentum took control.
By mid-session, the index had climbed above 167,500 points, reflecting improving investor confidence and sustained inflows into equities. The upward trend accelerated in the second half of the trading session, pushing the index to an intraday high of 168,869 points before mild profit-taking emerged near the close.
At the end of trading, the benchmark settled at 168,514 points, up 3,683 points or 2.23%.
Investors who had engaged in panic selling earlier in the week were seen re-entering the market as global sentiment shifted from fears of escalation to expectations of diplomatic de-escalation, analysts said.
Market watchers attributed the rally primarily to easing geopolitical concerns, particularly developments related to Middle East tensions, which have recently weighed on global risk assets.
In a separate development, Pakistan and the International Monetary Fund (IMF) are expected to continue discussions on the federal budget for fiscal year 2026-27 in the coming days following the conclusion of a staff-level visit.
