PSX gains over 6,700 points on hopes of Middle East de-escalation

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index continued its bullish momentum on Wednesday, surging by over 6,700 points as investors appeared hopeful of de-escalation in the Middle East.

The KSE-100 index climbed by 6,768.25 points, or 4.55 per cent, to close at 155,511.56 from the previous close of 148,743.31.

The market fluctuated between an intraday low of 151,262.76 points at opening and surged by 8,603.86 points to reach an intraday high of 157,347.17 at 1:13pm.

AKD Securities Ltd said the KSE-100 was eyeing recovery on “rising hopes of Middle East de-escalation”.

“KSE-100 index is expected to rebound after recording its worst monthly performance in March 26 in the past six years, as the likelihood of de-escalation in the Middle East conflict increases,” it noted.

Arif Habib Ltd highlighted China and Pakistan’s joint call for an immediate ceasefire in the Iran war, noting that “additional news flow has also been positive with regards to de-escalation”.

“Further positive news flow will drive the index above 160,000 points, which would add to evidence to indicate that a low has again been struck in the bullish seasonal time window,” it stated.

Topline Securities Ltd said the gains signalled a “strong rebound in market sentiment”.

“The upward trend was largely supported by declining international oil prices, which bolstered investor confidence. Furthermore, positive performance in global equity markets provided additional impetus to the bullish momentum,” it added.

It noted index-heavy stocks — United Bank Limited, Lucky Cement Limited, Fauji Fertiliser Company Limited, Habib Bank Limited, and Meezan Bank Limited — drove the index higher by 2,328 points during the session.

Among the most actively traded stocks today:

• K-Electric Limited: up 4.79pc to Rs7.22 on a volume of 78,566,008 shares
• Bank of Punjab: up 7.24pc to Rs26.52 on a volume of 49,505,656
• Cnergyico PK Limited: up 6.27pc to Rs6.95 on a volume of 38,009,642

The top advancing stocks were led by Mitchells Fruit Farms Limited (Right), rising 14.27pc to Rs8.01, followed by Power Cement (Pref), rising 10.03pc to Rs19.31, and Reliance Insurance Company Limited, rising 10.02pc to Rs17.79.

The top decliners were Supernet Technologies Limited, down 10pc to Rs149.97; 786 Investments Limited, down 10pc to Rs50.60, and The Pakistan Credit Rating Agency Ltd, down 9.99pc to Rs32.63.

On Tuesday, the KSE-100 had climbed by 1,900.34 points, marking a recovery after witnessing a meltdown on Monday.

On the macroeconomic front, the State Bank of Pakistan (SBP) maintained an active presence in the foreign exchange market, with cumulative net interventions of $12.4bn between June 2024 and December 2025, including $1bn in December alone. The move reflected efforts to stabilise the currency and bolster foreign exchange reserves.