KARACHI: The Pakistan Stock Exchange (PSX) continued its overnight recovery on Wednesday, with the benchmark KSE-100 index surpassing the 157,000 mark intraday as improving sentiment and bargain hunting drove a broad-based rally.

However, the index closed at 155,511.57 points, rising 6,768.25 points or 4.55 per cent, convincingly regaining the key psychological threshold of 150,000 after recent declines.

Market participants attributed the sharp rebound to increasing optimism about a potential ceasefire in the Middle East, following diplomatic efforts by several countries, including Pakistan. The improved outlook prompted widespread buying across sectors, restoring bullish momentum.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, stated that investor confidence grew as expectations of geopolitical de-escalation increased, leading to a robust recovery in equities.

On the macroeconomic front, inflation showed a modest uptick, with the Consumer Price Index (CPI) for March rising to 7.3pc year-on-year, compared to 7.0pc in February, the highest reading since August 2024.

Meanwhile, Pakistan and China jointly called for an immediate ceasefire in the Iran conflict and stressed the need to safeguard shipping routes through the Strait of Hormuz, further bolstering sentiment.

During the session, the KSE-100 index fluctuated within a broad range, reaching an intraday high of 157,347.18 points, a rise of 8,603.86 points, and a low of 151,262 points.

Trading was briefly halted after the KSE-30 index surged more than 5pc from the previous close, triggering the market-wide circuit breaker. Topline Securities noted that the rally was also supported by easing international oil prices and a positive trend in global equity markets, which added to investor confidence.

United Bank Ltd, Lucky Cement, Fauji Fertiliser Company, Habib Bank Ltd, and Meezan Bank collectively contributed 2,328 points to the index gains. Other notable contributors included MCB Bank, Bank Alfalah, National Bank of Pakistan, Pakistan Petroleum, and Engro Holdings.

Overall, heavyweight stocks added thousands of points to the benchmark, underscoring the breadth of the recovery.

Market activity remained strong, with traded volume increasing by 54.23pc to 670 million shares, while turnover value jumped by 95.10pc to Rs44 billion. K-Electric led the volume chart, with over 78 million shares changing hands.

Looking ahead, market direction is likely to remain sensitive to geopolitical developments. Investors are closely watching an upcoming address by US President Donald Trump, which could influence near-term sentiment.

Analysts expect that a cautious and conciliatory approach from global leaders could bolster de-escalation efforts, potentially supporting the recovery in the domestic market.

Published in Dawn, April 2nd, 2026