PSX surges on hopes of easing Iran tensions

Rabbia Zafar | 1 month ago

PSX cautious trading ahead of SBP policy

The Pakistan Stock Exchange (PSX) witnessed a strong rally as investor confidence rebounded on signs of a possible de-escalation in the Iran conflict and a broader recovery in global markets.

The benchmark KSE-100 index surged by over 6,200 points, closing at 154,999, marking a gain of more than 4%. The sharp rise reflects renewed optimism among investors after comments by US President Donald Trump संकेत that Washington could scale back its involvement in the conflict within weeks.

The upbeat sentiment was further supported by remarks from US Secretary of State Marco Rubio, who indicated the possibility of direct talks with Iran, hinting at a diplomatic breakthrough. These developments helped calm global markets that had been rattled by geopolitical uncertainty and rising oil prices.

PSX rebounds as hopes of Middle East deal lift sentiment

Stock markets across Asia mirrored the positive trend. Major indices in China, Hong Kong, and Japan posted gains, with Japan’s Nikkei 225 climbing around 4%. The global rally was also accompanied by a strengthening of regional currencies, including the Chinese yuan, against the US dollar.

Market analysts attributed the PSX surge to improving global cues and expectations of stability in energy prices. Ahfaz Mustafa, CEO of Ismail Iqbal Securities, noted that investor confidence has been significantly boosted by expectations of a near-term resolution to the conflict, along with attractive valuations in risk assets that are drawing fresh investment.

Similarly, Ahsan Mehanti of Arif Habib Commodities highlighted that the anticipated withdrawal of US forces and progress toward peace talks have acted as key catalysts for the bullish trend. He also pointed to positive domestic indicators, including strong remittances and foreign exchange reserves, as supporting factors.

The rally underscores how global geopolitical developments continue to influence Pakistan’s financial markets, with investors closely watching for further signs of stability in the region.