The Pakistan Stock Exchange (PSX) extended its upward momentum on Thursday as improving hopes for de-escalation in the Middle East boosted investor confidence and triggered strong buying activity across key sectors.
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During intraday trading, the benchmark KSE-100 Index surged to a high of 168,134.65 points, gaining 3,303.23 points, or 2 per cent, from the previous close. The index later eased slightly but remained firmly in positive territory, reflecting sustained investor optimism.
Market analysts linked the rally to renewed diplomatic efforts aimed at reducing tensions in the Middle East, particularly after indications emerged that Iran was reviewing a new proposal from the United States to end the ongoing conflict.
Ahfaz Mustafa, chief executive officer of Ismail Iqbal Securities, said the decline in global oil prices following reports of possible peace negotiations had strengthened investor sentiment. He noted that expectations surrounding the reopening of key trade routes and eventual regional stability had encouraged buying in equity markets.
The positive trend was also mirrored across Asian markets. Japan’s Nikkei index climbed sharply, while South Korea’s Kospi posted strong gains. Technology stocks, including Samsung Electronics, also traded higher amid broader market optimism.
Global investors remained focused on comments by US President Donald Trump, who said discussions with Iran were at a critical stage and could either result in a deal or renewed military action.
Meanwhile, oil prices edged slightly higher after recording sharp declines in the previous session. Brent crude and West Texas Intermediate both posted modest gains during Thursday trading.
On the domestic front, the government successfully raised significant funds through an auction of market treasury bills, with yields increasing across all maturities. Analysts said the higher yields reflected continued caution regarding inflation and monetary conditions.
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The PSX had already closed strongly higher in the previous trading session, extending a broader recovery trend driven by improving economic and geopolitical sentiment.