The local bourse advanced on Tuesday as risk appetite improved on signs of renewed US–Iran nuclear talks and a benign inflation print. Selective institutional buying helped lift the market ahead of the results season.
The benchmark Pakistan Stock Exchange KSE-100 Index touched an intraday high of 187,518.78, up 2,460.95 points (1.33%). It fell to a low of 185,545.92, still higher by 488.09 points (0.26%), from the previous close of 185,057.83.
Investor confidence improved on easing geopolitical risks and targeted buying, said Huzaifa Riaz, Director at Mayari Securities (Pvt) Limited. He added that January inflation reinforced the view that equities remain supported.
Sentiment received a boost after Masoud Pezeshkian said he ordered the start of talks with the United States on the nuclear issue. Both sides signalled room for diplomacy, even as Washington maintained naval deployments.
Inflation Data Remains Supportive
Pakistan’s Consumer Price Index (CPI) rose to 5.8% in January, up from 5.6% in December, and stayed within the State Bank of Pakistan target range of 5–7%. On a month-on-month basis, CPI increased 0.4%, reversing a 0.4% decline in December.
For Jul–Jan FY26, average inflation printed 5.24%, down from 6.5% a year earlier. Upstream pressures also eased. The Wholesale Price Index (WPI) averaged 0.29% in 7MFY26 versus 3.83% in 7MFY25. WPI fell 0.2% MoM in January after a 0.6% drop in December, suggesting softer pass-through to retail prices, barring energy shocks.
On Monday, the KSE-100 gained 883.35 points (0.48%) to close at 185,057.83, trading between 185,611.73 and 182,792.40.
