KARACHI – Bullish momentum returned to the Pakistan Stock Exchange (PSX) on Tuesday as investor sentiment strengthened on expectations of progress in a possible second round of United States–Iran negotiations aimed at easing ongoing geopolitical tensions.
The optimism in diplomatic developments helped ease global oil prices, reducing concerns over supply disruptions and providing a supportive environment for equities.
The benchmark KSE-100 Index traded firmly in positive territory during the early session. By 12:24 pm, the index had climbed to 174,631.25 points, gaining 2,434.55 points or 1.41%.
During intraday trading, the index reached a high of 175,298.11 points and a low of 173,405.57 points. Market participation remained strong, with over 227.2 million shares traded. The previous closing level stood at 172,196.70 points, while total traded value exceeded Rs17.55 billion.
Buying interest was seen across multiple sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing firms, power generation, and refineries, reflecting broad-based market recovery.
In international markets, crude oil prices softened as investors anticipated that renewed US–Iran dialogue could eventually improve supply conditions, easing pressure on global energy markets.
Market analysts said the overall sentiment remained positive during the first half of trading, with investors focusing on strong fundamentals and sector-wide activity. However, they added that future direction would depend on sustained buying interest and clarity on global geopolitical developments.
According to AKD Securities Director Research Mohammad Awais Ashraf, investors are closely monitoring the outcome of ongoing diplomatic efforts, particularly talks linked to US–Iran engagement expected this week in Islamabad.
He noted that any constructive progress could further support market recovery, especially given Pakistan’s improved external position following recent financial inflows, including $3 billion from Saudi Arabia and a $750 million Eurobond issuance.
He also highlighted a reported current account surplus of $1.0 billion in March 2026.
Ashraf further projected that inflation may remain around 9.6% in April 2026 despite rising fuel costs, supported by relatively stable food prices, which could keep real interest rates in positive territory.
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