KARACHI: Stocks extended gains for a third consecutive session on Thursday as easing geopolitical concerns and lower international oil prices boosted investor sentiment at the Pakistan Stock Exchange (PSX).
Topline Securities Ltd said investor confidence returned strongly to the local bourse, driven by encouraging developments in the ongoing US-Iran negotiations and a decline in international oil prices. Optimism over easing geopolitical tensions lifted overall sentiment, prompting buying across key sectors. The fall in oil prices, amid expectations of a constructive outcome in the US-Iran talks, further strengthened investor confidence.
The benchmark index remained firmly in the green throughout the session, maintaining strong upward momentum and touching an intraday high of 4,037 points before settling at the 168,514.45 level, up 3,683.02 points, or 2.23 per cent, at the close. The recovery reflected renewed optimism among market participants.
The rally was primarily fuelled by heavyweight stocks, including United Bank, Fauji Fertiliser, Lucky Cement, Habib Bank, and Hub Power, which collectively contributed 1,608 points to the benchmark index.
Market activity also improved compared to the previous session, with total traded volume surging 88.77pc to 729.40 million shares, while traded value rose 73.77pc to Rs34.9 billion. Hascol Petroleum topped the volume chart with 57 million shares.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said investor confidence had returned strongly due to optimism surrounding ongoing negotiations to end Middle East conflict, which further strengthened overall market momentum.
Media reports said Iran believed the latest proposal from the US had partly bridged the gap between the two sides as they sought to turn a fragile ceasefire into a peace deal.
On the diplomatic front, Prime Minister Shehbaz Sharif will meet Chinese President Xi Jinping and Premier Li Qiang during his visit to China from May 23 to 26.
Analysts said geopolitical developments would remain a key market catalyst, as ongoing diplomatic engagement and backchannel talks kept investors focused on geopolitical developments.
Published in Dawn, May 22nd, 2026
