Pakistan Stock Exchange (PSX) continued its recovery on Thursday as investor confidence improved following signs of possible diplomatic engagement between the United States and Iran, along with relative stability in global oil prices.
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The benchmark KSE-100 index gained around 2,600 points during early trading, extending the positive momentum witnessed in the previous session. By 11:04am, the index had climbed 2,604.49 points, or 1.49 per cent, to reach 177,890.27 points compared with the previous close of 175,285.78 points.
Market analysts attributed the recovery to improving sentiment after comments from US President Donald Trump, who indicated that Tehran was interested in reaching a settlement with Washington. Investors viewed the remarks as a possible sign that efforts could resume to reduce tensions between the two countries.
Awais Ashraf, director of research at AKD Securities, said the market was continuing Wednesday’s rebound following Trump’s statements. He noted that expectations of renewed negotiations between Washington and Tehran had helped ease investor concerns.
He added that stability in international oil prices over the past two days had also supported market confidence. Brent crude futures, after rising for four consecutive sessions, declined slightly on Thursday, trading at $84.95 per barrel, while US West Texas Intermediate futures fell to $79.45 per barrel.
The latest recovery follows a sharp decline earlier in the week when the KSE-100 index suffered heavy losses due to renewed concerns over the US-Iran conflict and possible disruptions to energy supplies through the Strait of Hormuz.
On Tuesday, the index plunged by 6,408.23 points amid panic selling as investors reacted to escalating military tensions in the region. However, value-hunting by investors helped the market recover part of those losses on Wednesday.
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Analysts said the market outlook remains closely linked to developments in global geopolitics, particularly the situation in the Middle East, oil price movements, and any progress toward diplomatic solutions between major powers.