The PSX rally on falling oil prices extended on Wednesday, with the benchmark KSE-100 index climbing above 158,000 points in early trade. Investor sentiment improved after the State Bank of Pakistan kept its policy rate unchanged at 10.5%, while lower crude prices helped ease concerns about imported inflation and energy costs.
The rally built on a strong rebound from the previous session, when the KSE-100 recovered sharply after a steep recent correction. Market participants also pointed to attractive valuations after the index had fallen heavily from earlier highs, making oversold stocks more appealing.
Another positive factor was remittances. State Bank of Pakistan data showed workers’ remittances reached $26.5 billion in July-February FY26, up 10.5% year-on-year, which added to confidence around external-sector stability.
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Falling oil prices mattered because Pakistan is a major energy importer. When crude eases, investors often expect less pressure on inflation, the current account, and corporate costs. That can quickly improve appetite for equities, especially after a period of geopolitical uncertainty.
At the same time, the broader global backdrop remained mixed. Reports on possible emergency oil reserve releases and shifting signals from the Middle East conflict pushed crude prices lower from recent highs, giving regional markets some breathing room even as volatility persisted.
For PSX, the combination of stable interest rates, improving sentiment, and relief in oil markets helped fuel fresh buying. As a result, the latest move suggested investors were willing to step back into risk assets after the recent selloff.
