Key Points
- KSE-100 Index gains more than 1,200 points in early Thursday trade
- Investors cheer signs of progress in Iran-US negotiations
- Lower oil prices improve outlook for Pakistan’s import-dependent economy
ISLAMABAD: Pakistan’s stock market extended its bullish momentum in early trade on Thursday, with investors continuing aggressive buying on expectations of a possible diplomatic breakthrough between the United States and Iran.
The benchmark KSE-100 Index rose by around 1,247 points during early trading, climbing to 172,952 points as investor confidence remained strong following Wednesday’s nearly 7,000-point rally, according to the open market data.
Market analysts said sentiment improved after reports indicated progress toward a possible Iran-US understanding that could reduce tensions in the Gulf and ease risks surrounding the Strait of Hormuz, a critical global oil shipping route.
The previous session saw the Pakistan Stock Exchange close at 171,704.75 points, up 6,962 points or 4.23 per cent, marking one of the strongest single-day rallies in recent years.
Brokerage firms said lower global oil prices further boosted investor appetite, as easing energy costs are viewed positively for Pakistan’s inflation outlook, current account position, and industrial sectors.
Buying interest remained broad-based in early Thursday trade, with banking, cement, fertiliser, and energy shares leading gains as investors anticipated improved macroeconomic conditions if regional tensions continue to ease.
Global markets also advanced on hopes that diplomatic engagement between Washington and Tehran could prevent a wider conflict in the Middle East.
Asian equities touched fresh highs, with investors shifting back toward risk assets as oil prices retreated.
Analysts cautioned that volatility could persist amid uncertainty surrounding negotiations, though they said sustained declines in oil prices would remain supportive for Pakistan’s equity market in the near term.
