KARACHI: The Pakistan Stock Exchange (PSX) on Wednesday extended its overnight recovery rally as investors engaged in value hunting across the board amid easing geopolitical tensions and falling oil prices, pushing the benchmark KSE-100 index above the 165,000 mark during intraday trade.

The extension of overnight optimism followed fresh comments from the US president, which drove oil prices down by more than 2pc after Donald Trump again asserted that the Iran war would end “very quickly”. However, investors remained wary about the outcome of peace talks as disruptions to Middle Eastern supply persisted.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX witnessed a stable session, with the index closing at 164,831.42, up 1,934.74 points or 1.19pc.

The market experienced significant intraday movement, with the index touching a high of 165,082 points and a low of 162,896 points.

Interior Minister Mohsin Naqvi is in Tehran for the second time in less than a week for talks with Iranian officials. Improved market confidence was largely driven by expectations of easing tensions between Iran and the US, as well as a decline in international oil prices.

On the corporate front, Lucky Motor Corporation was set to officially launch four GAC electric vehicles in Pakistan. The launch would include models from two GAC electric sub-brands — AION and Hyptec. The expected line-up includes the AION V, AION UT, AION ES and Hyptec HT.

Topline Securities Ltd said improved market confidence was largely driven by easing tensions in the Middle East.

The positive performance was mainly supported by heavyweight stocks, including Meezan Bank, Fauji Fertiliser, United Bank, Engro Holdings and Pakistan Petroleum, which collectively added 836 points to the benchmark and played a pivotal role in sustaining the market’s bullish momentum.

Investor participation remained subdued, with trading volume falling 1.41pc to 386 million shares and traded value decreasing 12.4pc to Rs20.1bn. Sui Southern Gas Company emerged as the volume leader, with 25 million shares traded.

Despite prolonged geopolitical tensions, economic performance in April showed notable improvement across key sectors. The automobile sector maintained stable momentum, with passenger car and tractor sales surging 106.9pc and 76.3pc year-on-year, respectively, supported by a 36.6pc rise in auto financing to Rs359.6 billion. Urea sales also remained strong, recording an 84.7pc year-on-year increase despite a rate hike during the month.

Published in Dawn, May 21st, 2026