The Pakistan Stock Exchange (PSX) rebounded strongly on Wednesday, with the benchmark KSE-100 Index gaining more than 1,700 points as investors returned to the market following the previous session’s sharp sell-off, despite ongoing geopolitical tensions in the Middle East.
The benchmark index opened in positive territory and remained in the green throughout the trading session. It climbed as much as 3,182.56 points during intraday trading to reach a high of 176,701.38, recovering a significant portion of Tuesday’s losses.
By the close of trading, the KSE-100 Index settled at 175,285.78, up 1,766.96 points, or 1.02%, from the previous session, according to data from the Pakistan Stock Exchange.
Buying activity was broad-based, with investors accumulating shares in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies, power generation firms, and refineries.
The recovery followed Tuesday’s steep decline, when the KSE-100 Index plunged 6,408.23 points, or 3.56%, to close at 173,518.82, as investors reacted to escalating tensions between the United States and Iran and fears of disruptions to global energy supplies.
Market sentiment remained cautious amid continued hostilities in the Middle East. Reports indicated that US military operations against Iran continued for a fourth consecutive night, while Tehran warned it could expand disruptions to regional energy routes if pressure from Washington persisted.
Concerns over regional security also pushed global oil prices higher. Brent crude rose around 2% to $86.44 per barrel, while West Texas Intermediate (WTI) crude gained approximately 1.8% to $80.77 per barrel.
Despite geopolitical uncertainty, global equity markets were supported by strong technology earnings and renewed optimism surrounding artificial intelligence. Technology-focused markets outperformed, with Nasdaq futures advancing, Japan’s Nikkei 225 posting gains, and South Korea’s KOSPI recording a strong rally.
The PSX’s recovery reflects renewed investor confidence, although analysts expect market volatility to persist as investors continue to monitor developments in the Middle East and their potential impact on global energy markets and investor sentiment.
