Karachi: Stocks at the Pakistan Stock Exchange (PSX) continued their upward momentum on Wednesday, with the benchmark KSE-100 Index gaining more than 1,900 points amid falling global oil prices and improving investor sentiment.
During intraday trading, the KSE-100 Index rose by 2,012.54 points, or 1.29 percent, to reach 158,189.66 points, compared to the previous session’s close of 156,177.12. The previous session had already witnessed the market’s second-highest single-day increase.
Market analysts said the rally followed the State Bank of Pakistan (SBP) decision to keep the policy rate unchanged at 10.5 percent, a move that reassured investors and revived risk appetite.
Investor sentiment was also supported by positive trends in global markets and declining oil prices after remarks by US President Donald Trump suggested that tensions in the Middle East could ease.
Chief Executive Officer of Ismail Iqbal Securities, Ahfaz Mustafa, said easing oil prices, proactive government measures and attractive valuations had drawn investors back to the market.
He said the market had corrected by more than 20 percent earlier due to geopolitical uncertainty, making stocks comparatively cheaper and dividend yields more appealing.
Similarly, Director Research at Arif Habib Limited, Ahsan Mehanti, said stocks staged further recovery in early trading due to institutional interest in oversold shares, lower global crude oil prices and encouraging remittance data.
He noted that workers’ remittances reached $3.3 billion, marking an increase of 5.2 percent year-on-year, which supported investor confidence.
Analysts also cited government assurances to renegotiate aspects of the International Monetary Fund (IMF) programme to lower taxes and efforts to secure crude oil supplies during the ongoing regional crisis as key factors behind the bullish momentum.
Meanwhile, global markets showed mixed trends. Stocks in China and Hong Kong edged higher as investors shifted toward defensive sectors and increased bets on new energy industries.
Oil prices remained volatile amid uncertainty surrounding the ongoing conflict involving Iran, the United States and Israel, which has raised concerns about global inflation and economic growth.
Brent crude futures traded around $87.89 per barrel, while US crude was near $83.47 per barrel after earlier fluctuations following reports that the International Energy Agency had proposed a major release of strategic oil reserves to stabilise global prices.