The Pakistan Stock Exchange (PSX) surged over 4,500 points in early trading on reports of Pakistan’s mediation efforts in the Middle East conflict. Investor confidence improved after US President Donald Trump announced a five-day pause on strikes in Iran. Broad-based buying lifted key sectors, including autos, cement, banks, oil, and power.
The KSE-100 Index touched a high of 157,442.68, up 2,561 points or 1.68% by 09:50 am. Index-heavy stocks such as DG Khan Cement, Habib Bank Limited, MCB Bank, Mari Petroleum, and Pakistan State Oil traded higher. Market activity reflected optimism about regional diplomacy and easing oil prices below $100 per barrel.
Read more: Pakistan stocks rise on Middle East de-escalation hopes
Reports highlighted Pakistan’s role alongside Egypt and Turkey in facilitating high-level talks in Islamabad to ease US-Israel tensions with Iran. The Financial Times noted that Pakistan pitched itself as a venue for discussions involving senior US and Iranian officials. Army chief Asim Munir and Prime Minister Shehbaz Sharif held separate talks with US and Iranian leaders, respectively.
Trump’s postponement of planned strikes on Iran’s energy grid followed “very good and productive” conversations with Tehran, sending global markets higher. Brent crude rose to $101 per barrel, while WTI climbed to $89.71. Asian markets also moved up, including Japan’s Nikkei, Hong Kong’s Hang Seng, and the MSCI Asia-Pacific index.
Read more: Positive sentiment returns as PSX gains over 4200 points
The PSX rally comes after an eight-week decline that saw the benchmark index lose 1,126 points. Analysts said Pakistan’s mediation efforts, combined with easing oil prices and a temporary pause in hostilities, are restoring investor optimism. Caution remained in US and European futures amid ongoing global uncertainty.