The Pakistan Stock Exchange (PSX) staged a powerful recovery on Wednesday, with the benchmark KSE-100 Indexsoaring more than 3,100 points and reclaiming the 180,000-point level as improving prospects for a diplomatic breakthrough in the Iran conflict lifted investor sentiment.
According to PSX data, the market opened sharply higher, with the KSE-100 Index gaining more than 2,200 pointswithin the first few minutes of trading. The rally continued throughout the session as buying activity strengthened across major sectors.
By 3:27 p.m., the benchmark index was trading at 180,121.54 points, up 3,038.32 points, or 1.72%, from the previous close.
The market’s strong performance was driven by broad-based buying in key sectors, including automobile assemblers, cement, commercial banks, fertilizer, oil marketing companies (OMCs), power generation, and refineries.
Investor confidence was further supported by reports that Pakistan has requested China to refinance a $1.3 billion commercial loan, with the funds expected later this month once terms are finalized.
The rebound followed Tuesday’s volatile trading session, when the KSE-100 Index fell 1,116.80 points, or 0.63%, to close at 177,083.22 points amid concerns over disruptions to Middle East energy supplies.
Global markets also traded higher on Wednesday as strong corporate earnings and optimism surrounding artificial intelligence (AI) investments pushed Wall Street to fresh record highs. Sentiment improved further after U.S. President Donald Trump said his administration had held “very good discussions” with Iran, raising hopes that the prolonged conflict could move toward a diplomatic resolution.
Meanwhile, European equities posted modest gains, Japan’s Nikkei index climbed 3.7%, and South Korea’s benchmark advanced 3.8%, reflecting improving global risk appetite.
Despite the optimism, oil prices remained elevated after Yemen’s Iran-backed Houthi rebels claimed responsibility for an attack on a Saudi oil tanker in the Red Sea, highlighting ongoing geopolitical risks in the region.
