KARACHI — The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged on Wednesday, continuing its recovery from earlier losses. During intraday trading, the index gained 3,619.38 points, or 2.41 percent, to reach 153,635.54 points by 12:06 pm, up from Tuesday’s close of 150,016.16 points.
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The index had fallen below 150,000 points on Monday as volatility stemming from the Middle East conflict and border tensions with Afghanistan prompted panic selling by investors. However, a rebound on Tuesday ended a four-day losing streak, lifting the market above the 150,000-point mark.
According to Topline Securities Ltd, the rally was supported by stable oil prices and positive regional market trends. Despite the gains, trading activity remained subdued, reflecting cautious investor sentiment as participants await clearer signals before making significant moves.
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The local bourse saw a two-way session, swinging between an intraday high of +2,324 points and a low of -669 points before settling at 150,016, up 837 points (+0.56%).
Support came from stable oil… pic.twitter.com/16S13yJKsn
— Topline Securities Ltd (@toplinesec) March 17, 2026
Global oil market disruptions continue to impact Pakistan’s equity market. The ongoing conflict in the Middle East, coupled with shipping disruptions in the Strait of Hormuz, has pushed oil prices higher. On Tuesday, US crude increased 2.28 percent to $95.63 per barrel, while Brent crude rose 2.59 percent to $102.81 per barrel.
The rise in oil prices is expected to influence domestic inflation, with analysts predicting a sharp uptick in headline inflation in the coming months. Consequently, the State Bank of Pakistan (SBP) is anticipated to raise its policy rate at the next monetary policy meeting to curb inflationary pressures.
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Market experts caution that while the KSE-100’s recovery provides a temporary boost, investors remain wary of regional geopolitical risks and their potential impact on Pakistan’s economy and equity market.