The Pakistan Stock Exchange (PSX) witnessed strong buying activity on Wednesday as improving diplomatic prospects in the Middle East and easing concerns over energy supplies boosted investor sentiment. The benchmark KSE-100 Index gained 780.17 points, or 0.46%, to reach 172,182.25 during afternoon trading.
The index touched an intraday high of 172,762.41 around 12:30 pm after opening on a positive note and gaining nearly 950 points in the early minutes. Buying remained broad-based across automobile assemblers, cement companies, commercial banks, oil and gas exploration firms, oil marketing companies and refineries.
Investor focus also remained on Pakistan’s ongoing engagement with the International Monetary Fund (IMF). An IMF staff mission has arrived in Pakistan for negotiations on the fourth review of the $7 billion Extended Fund Facility and the third review of the $2 billion Resilience and Sustainability Facility.
Market sentiment was also supported by declining international oil prices and developments aimed at reducing tensions in the Middle East. Brent crude futures had fallen to $97.36 per barrel in the previous session, their lowest level since September 8, while West Texas Intermediate also touched its lowest level since September 1.
The market’s gains came despite concerns over Pakistan’s economic outlook. The Asian Development Bank has projected Pakistan’s economic growth at 3.7% for FY2027, while inflation is expected to rise to 8.3% due to higher energy costs, exchange-rate pressures and the economic impact of the Middle East conflict.
The KSE-100 had closed at 171,402.08 points on Tuesday after late-session buying helped the market recover from earlier losses.
International markets also remained positive on Wednesday. Asian and European equities advanced, supported partly by continued investor interest in artificial intelligence-related technology stocks and easing oil prices.
Meanwhile, Reuters reported that Saudi Arabia had restarted operations at its East-West Pipeline and may have resumed exports from the Red Sea port of Yanbu. US President Donald Trump also said talks with Iran in New York had made progress, although he warned of further action if an agreement was not reached.
