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KARACHI: The Pakistan Stock Exchange (PSX) attracted renewed buying interest on Thursday as investors engaged in value-hunting across select sectors, helping the index recover overnight losses amid falling oil prices, following rekindled hopes for a potential peace deal between the US and Iran, despite some incidents that put the fragile ceasefire to the test.
Topline Securities Ltd said that after an overnight mild pullback, the PSX closed firmly in positive territory as buyers regained control in the latter half of the day. The benchmark index oscillated between volatility and strength, reaching an intraday high of 1,265 points before settling at 171,175, up 984 points or 0.58 per cent.
The upside momentum was largely driven by broad-based buying interest, supported by easing geopolitical tensions in the Middle East. The absence of any conclusive escalation in US-Iran dynamics, along with its calming effect on global oil prices, helped restore investor confidence.
On the index contribution front, heavyweight stocks remained in focus, with Fauji Fertiliser Company Ltd, Pakistan Petroleum Ltd, Oil and Gas Development Company Ltd, Lucky Cement Ltd, and Pakistan Telecommunication Company Ltd collectively adding approximately 458 points to the benchmark’s gains.
Market participation improved compared to the previous session, with total traded volume rising 26.31pc to 697 million shares and the traded value jumping by 9.99pc to Rs26.1 billion. Beco Steel Ltd emerged as the volume leader, with 113 million shares changing hands during the session.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), said investor sentiment remained cautiously optimistic, as hopes for progress in US-Iran negotiations supported the market, although the absence of a formal agreement continued to keep risk appetite in check. Nonetheless, selective buying in heavyweight stocks helped the index close in the green after an overnight downturn.
The US and Iran faced off overnight, pulling Kuwait and Bahrain into the conflict, amid escalating tensions that could jeopardize negotiations for a temporary peace agreement.
On the economic front, the federal government will present its 2026-27 budget on June 10.
Analysts believe the likelihood of a US-Iran diplomatic breakthrough will continue to underpin investor sentiment. However, until greater clarity emerges on the geopolitical front, the PSX is likely to remain sensitive to headlines, with stock-specific developments driving near-term performance.
Published in Dawn, June 5th, 2026
