KARACHI: The Pakistan Stock Exchange (PSX) on Wednesday attracted aggressive buying interest amid falling oil prices and easing geopolitical tensions, propelling the benchmark KSE-100 index above the 180,000-point level, reflecting improving investor confidence amid a strong economic outlook and moderating inflationary pressures.
Topline Securities Ltd said bullish sentiment prevailed throughout the session, driven by improving geopolitical relations between the US and Iran. The continued decline in international oil prices further bolstered investor confidence, triggering broad-based buying across key sectors. Optimism was also supported by expectations that softer oil prices could ease inflationary pressures and improve Pakistan’s external account outlook.
The index remained firmly in positive territory throughout the session, climbing to an intraday high of 3,119 points before settling at 180,014, gaining 2,931 points or 1.66 per cent.
Bulls advance as easing US-Iran tensions drive widespread rally
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said PSX recorded a strong recovery rally, driven by a sharp decline in international oil prices, which have fallen more than 9pc since Tuesday’s peak. Optimism grew over the resumption of US-Iran talks, raising hopes for a diplomatic resolution to the ongoing conflict.
On the macro front, Pakistan has reportedly requested China to refinance a $1.3bn commercial loan, with the funds expected to be received later this month once the terms and conditions are finalised.
Habib Bank, United Bank, Meezan Bank, Engro Holdings, Fauji Fertiliser, MCB Bank, Lucky Cement, Systems Ltd, Hub Power, and Fatima Fertiliser emerged as the top contributors, collectively adding 1,906 points to the benchmark.
Market activity remained healthy, with traded volume rising 4.11pc to 740.5 million shares and traded value surging 38.77pc to Rs35.8bn.
Analysts expect improving geopolitical sentiment, falling international oil prices, and ongoing macroeconomic stability to support investor confidence. However, US-Iran negotiations and the corporate earnings season will remain key near-term catalysts shaping market direction.
Published in Dawn, August 6th, 2026
