KARACHI: The Pakis­tan Stock Exchange (PSX) on Thursday extended overnight gains as bargain hunters continued to lift shares at attractive valuations, pushing the benchmark KSE-100 index above 178,000 points.

Topline Securities Ltd said the index staged a strong recovery, extending Wednesday’s rebound as broad-based buying returned to the market. Improved investor sentiment, easing concerns about geopolitical tensions, and renewed interest in blue-chip stocks helped the index recoup a significant share of the losses recorded earlier this week.

The index closed at 178,123.57 points, gaining 2,837.78 points or 1.62pc. It stayed in positive territory throughout the session, reaching an intraday high of 178,431 points and a low of 175,672 points, reflecting sustained buying interest across key sectors.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said PSX witnessed another strong session, building on the overnight rally. The market maintained its upward momentum as investors continued to strengthen their positions amid media reports indicating a possible resumption of dialogue between the US and Iran, which helped improve overall risk appetite.

Geopolitical optimism fuels recovery rally for second session

On the corporate front, Lotte Chemical Pakistan Ltd announced its 2QCY26 financial results, reporting earnings per share of Rs1.87, up 192pc quarter-on-quarter. The company also declared a cash dividend of Rs1.50 per share.

Engro Holdings, United Bank, Meezan Bank, Hub Power, Lucky Cement, Fa­­u­­ji Fertiliser, Habib Bank, MCB Bank, Fatima Fertil­iser, and National Bank dr­­­­­­­ew substantial buying in­­t­­­­­­­erest, collectively adding 1,490 points to the benchmark.

Market activity remained relatively stable, with trading rising 26.23pc to 736.9 million shares and total turnover surging 32.88pc to Rs34.5 billion. Lotte Chemical topped the volume chart with 70.0 million shares.

Analysts say all eyes are on developments on the geopolitical front. Contin­ued progress in US-Iran negotiations, together with the ongoing corporate earnings season, could provide further support for the market and help sustain the recovery.

Published in Dawn, July 17th, 2026