PSX rises on Middle East easing, as improving geopolitical sentiment lifted investor confidence in Pakistan’s equity market.
The benchmark KSE-100 Index closed at 152,207.89 points, gaining 1,225.99 points, or 0.8%, compared to the previous session. During the session, the index showed significant volatility. It reached an intraday high of 157,442.68 points, up 3.08%.
At its lowest, the index still remained positive at 153,382 points, reflecting a gain of 0.42%. This performance indicates sustained investor interest despite ongoing uncertainty.
Market analysts attribute the rally to expectations of easing tensions in the Middle East. Reports suggesting Pakistan’s potential mediation role between the United States and Iran also supported sentiment.
Additionally, statements by US President Donald Trump about delaying possible military action bolstered market confidence.
Asian markets also reacted positively to signs of de-escalation. Major indices in Tokyo, Hong Kong, Shanghai, and other cities posted gains before trimming them later.
Meanwhile, oil prices moved in mixed directions. After a sharp drop earlier, prices edged higher amid ongoing uncertainty. These global trends continue to influence the direction of Pakistan’s stock market.
Read: PSX Rises as Middle East Tensions Show Signs of Easing Boosting Investor Sentiment
Experts believe the market could see a stronger recovery if geopolitical tensions ease further. Valuations have become more attractive, with forward price-to-earnings ratios around 6.6 times, according to research firms. Dividend yields also remain appealing, estimated at approximately 6.8%.
However, analysts caution that market performance will depend on developments in the Middle East, post-Ramadan trading activity, and upcoming inflation data.
