Falling global oil prices and easing geopolitical risks spark broad-based buying across the Pakistan Stock Exchange.
KARACHI: The Pakistan Stock Exchange (PSX) staged a strong rally on Tuesday as easing geopolitical tensions between the United States and Iran, coupled with declining international oil prices, fueled broad-based buying and lifted investor confidence.
The benchmark KSE-100 Index remained firmly in positive territory throughout the trading session, rising by 2,931 points, or 1.66%, to close at 180,014 after touching an intraday high of 3,119 points.
Market participants welcomed signs of improving relations between Washington and Tehran, which helped ease concerns over potential disruptions to global energy supplies. The continued decline in crude oil prices further supported sentiment by raising expectations of lower inflationary pressures and an improved external account outlook for Pakistan.
The rally was broad-based, with investors accumulating shares across banking, fertilizer and blue-chip sectors.
Among individual stocks, HBL, UBL, MEBL, ENGROH, and FFC emerged as the biggest contributors to the benchmark index, collectively adding around 1,293 points to the day’s gains.
Trading activity also strengthened alongside the market’s advance. Total traded volume increased to 740 million shares, while the total value of traded shares reached PKR 35.9 billion, indicating improved investor participation.
TSBL led the volume chart, with nearly 52 million shares changing hands during the session.
The sharp rebound reflects renewed optimism among investors following recent geopolitical developments, as lower oil prices are expected to reduce Pakistan’s import bill, ease inflationary pressures and improve macroeconomic stability.
Market analysts said sustained stability in global energy markets and further progress on the diplomatic front could continue to support investor sentiment in the near term. However, they noted that global geopolitical developments and domestic economic indicators will remain key factors influencing market direction in the coming sessions.