Broad-based buying lifts Pakistan stocks as easing geopolitical tensions boost investor sentiment
KARACHI, June 18, 2026 — The Pakistan Stock Exchange (PSX) witnessed strong bullish momentum on Thursday, with the benchmark KSE-100 Index gaining more than 1,100 points in intraday trading as investors reacted to growing optimism over a potential US–Iran peace agreement.
By 1:30 PM, the KSE-100 Index stood at 181,629.04 points, reflecting a gain of 0.62 per cent. The rise extended positive sentiment across the market, driven by expectations that easing geopolitical tensions could stabilise global financial conditions and reduce risks in energy markets.
Trading activity remained broad-based, with strong buying interest observed in automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs) and power generation stocks. Market participants said the rally was supported by renewed confidence in risk assets following recent global developments.
Index-heavy stocks played a key role in driving gains, with HUBCO, PRL, MARI, OGDC, PSO, MCB, MEBL and NBP all trading in positive territory. Their collective performance helped push the benchmark higher during intraday trade, reflecting sustained institutional interest in blue-chip equities.
Investors said sentiment improved after reports suggested progress on a US–Iran peace framework, which could ease tensions in the Middle East and improve energy supply stability. Analysts noted that expectations of reduced geopolitical risk have encouraged fresh inflows into equities, particularly in sectors linked to oil, banking and industrial production.
According to market reports, the proposed agreement is also expected to support the reopening of key shipping routes, including the Strait of Hormuz, which plays a critical role in global oil transportation. This development has further strengthened optimism in energy-sensitive stocks.
Despite recent volatility, analysts said the market continues to show resilience, with investors taking positions ahead of potential macroeconomic and geopolitical shifts. They added that the KSE-100’s intraday strength reflects improving risk appetite and a shift toward equities amid easing global uncertainty.
Market observers expect volatility to persist in the near term, but say sentiment will remain closely tied to developments in the Middle East and global energy markets.
