PSX Surges Over 2,200 Points as Iran Talks Boost Investor Confidence
Pakistan Stock Exchange rallies after renewed US-Iran diplomacy eases geopolitical concerns and strengthens expectations of lower inflation and monetary easing.
The Pakistan Stock Exchange records strong gains as investor confidence improves.
KARACHI — PSX started the trading week on a strong note, with the benchmark KSE-100 Index climbing more than 2,200 points during intraday trading as investors responded positively to easing geopolitical tensions and improving economic expectations.
By 11:00am, the KSE-100 Index had gained 2,273.78 points from its previous close of 176,094.11, before trimming some of its gains later in the session. At 2:18pm, the benchmark remained firmly in positive territory, up 1,781.72 points.
More than 100 words into the trading session, PSX continued to benefit from renewed optimism after US President Donald Trump announced that fresh negotiations with Iran would begin later in the day, reducing immediate fears of a wider regional conflict. The prospect of diplomatic progress weighed on global oil prices, improving investor sentiment across regional financial markets.
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According to market analysts, the easing of geopolitical uncertainty encouraged buying activity, with investors expecting that improved global stability could support Pakistan’s economic outlook.
Mettis Global said the rally reflected stronger market confidence following Trump’s decision to suspend planned military action against Iran, easing concerns over regional instability.
Awais Ashraf, Director of Research at AKD Securities, said positive sentiment had carried over from the previous week, driven by expectations that negotiations between Washington and Tehran could lead to a diplomatic breakthrough.
He added that investors were also awaiting Pakistan’s latest inflation data, expecting consumer inflation to return to single digits in July. Such an outcome could strengthen expectations of further monetary easing by the State Bank of Pakistan, providing additional support to equities.
The market’s rebound follows a difficult July, when the KSE-100 Index declined 4,208 points, or 2.3%, amid heightened US-Iran tensions that pushed international oil prices higher and dampened investor confidence.
According to Topline Securities, average daily trading volume during July reached 845 million shares, while the average daily traded value stood at Rs37.5 billion, reflecting continued investor participation despite increased market volatility.
