The Pakistan Stock Exchange (PSX) continued its bullish momentum on Wednesday as strong buying activity pushed the market significantly higher during intraday trade.
Read More: PSX rebounds to gain over 1,090 points
The benchmark KSE-100 Index gained 1,934.74 points, or 1.19%, reaching 164,831.42 points at 3:44 pm compared to the previous close of 162,896.68 points.
The upward trend followed a recovery session a day earlier when the market snapped a seven-day losing streak and gained over 1,000 points, indicating a return of investor confidence after recent volatility.
Market analysts attributed the positive sentiment to improving geopolitical signals, particularly developments in negotiations between the United States and Iran, which helped ease concerns about regional instability and its potential impact on global markets.
Investors also responded positively to a slight decline in international oil prices, which eased inflation expectations and strengthened hopes for macroeconomic stability in Pakistan. Lower energy prices are typically viewed as supportive for emerging markets, including Pakistan, as they reduce import pressure and improve fiscal outlooks.
Last week, market sentiment had remained under pressure due to uncertainty surrounding US-Iran talks and fears of possible disruptions in the Strait of Hormuz, a critical global oil shipping route. Those concerns had contributed to sustained selling pressure across several sessions.
However, the latest rebound suggests renewed investor optimism, with participants returning to equities amid expectations of improved external conditions and potential policy stability.
Read More: PSX gains over 2000 points sharply
Trading volumes also showed signs of recovery as institutional investors resumed activity, further supporting the upward movement of the index.
Analysts caution that while short-term gains reflect improved sentiment, the market may continue to react to global geopolitical developments and oil price fluctuations in the coming sessions.