The Pakistan Stock Exchange PSX surged sharply on Wednesday, gaining nearly 7,000 points as optimism grew over a possible US-Iran peace breakthrough. The rally reflected strong investor confidence and improved global risk sentiment. Market participants reacted positively to easing geopolitical tensions.
The benchmark KSE-100 index rose by 6,962 points, or 4.23 percent, closing at 171,704.76. The index saw strong intraday volatility but maintained a bullish trend throughout the session. Trading activity also increased significantly compared to the previous day.
Read more: PSX gains over 790 points
Investor sentiment improved after reports suggested progress in US-Iran negotiations and reduced tensions in the Strait of Hormuz. The easing of oil-related risks helped stabilize global market expectations. Lower crude prices also reduced concerns over inflation and external account pressure.
Heavy buying was seen across key sectors including banks, cement, energy, and oil and gas. Major stocks such as UBL, OGDC, HUBC, and Lucky Cement contributed significantly to the index gains. Both institutional and retail investors participated actively in the rally.
Read more: PSX falls amid global tensions and trade deficit concerns
Trading volume jumped to 1.20 billion shares compared to 453 million a day earlier. Market analysts say future direction will depend on developments in geopolitical negotiations. Any setback in talks could trigger renewed volatility in the market.