Bullish momentum at bourse, KSE-100 gains over 4% amid US-Iran peace hopes

Massive buying interest was observed at the Pakistan Stock Exchange (PSX) on Wednesday, after US President Donald Trump said on Tuesday that he was halting the US military operation to escort ships through the Strait of Hormuz in a bid to reach a deal with Iran to end the Middle East war.

The market opened on a relatively stable note with minor fluctuations during the early hours, as the index moved in a narrow range through the late morning.

However, sentiment turned decisively positive after mid-day. From around early afternoon, the index began a steady upward climb, hitting an intra-day high of 172,088.58.

Despite a slight pullback near the peak, the index maintained most of its gains and closed near session highs.

At close, the benchmark index settled at 171,704.75, up by 6,962.28 points or 4.23%.

“The market staged a sharp rally as sentiment turned decisively positive following President Donald Trump’s signal of progress on a potential Iran deal, easing tensions around the Strait of Hormuz,” brokerage house Topline Securities said in its post-market report.

“Momentum received an additional boost during the session when Prime Minister Shehbaz Sharif reinforced the positive narrative via a statement appreciating Trump’s leadership and the timely de-escalation efforts. The endorsement further cemented investor confidence, adding fuel to the ongoing rally,” it added.

Meanwhile, a sharp decline in international oil prices provided a strong tailwind to the market, alleviating concerns over external account pressures and inflationary risks. The drop in crude acted as a catalyst for cyclical plays, amplifying buying interest and sustaining the upward trajectory, Topline said.

Index heavyweights including UBL, LUCK, FFC, PPL, OGDC, and ENGROH led the charge, collectively contributing 2,920 points to the index, as per the post-market report.

In a key development, the US said it was getting close to an agreement with Iran on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations, Axios reported on Wednesday, citing two U.S. officials and two other sources briefed on the issue.

On Tuesday, PSX extended its gains, closing higher as early optimism driven by easing geopolitical tensions outweighed late-session volatility triggered by uncertainty in global energy markets.

The benchmark KSE-100 Index gained 793.53 points or 0.48% to close at 164,742.47 points,

Internationally, stocks leapt, oil prices sank, and the dollar dropped in the Asian morning on Wednesday after ​US President Donald Trump touted “great progress” towards a “final agreement” with Tehran, while momentum in AI-driven trades accelerated.

Trump said he ‌would briefly pause an operation escorting ships through the Strait of Hormuz, which carries about a fifth of global oil and has been blockaded by Iran since late February, triggering a global energy crisis.

The news sent Brent crude tumbling 1.2% to $108.51 per barrel, while S&P 500 e-mini futures were up 0.3%.

MSCI’s broadest ​index of Asia-Pacific shares outside Japan jumped 2.3% to a fresh record, led by a 5.1% surge in South Korea’s ​Kospi, clearing the 7,000 mark for the first time.

Stocks on Wall Street hit fresh records on Tuesday as the S&P 500 rose 0.8%, and the Nasdaq Composite gained 1%.

Meanwhile, the Pakistani rupee strengthened against the US dollar, appreciating 0.01% in the inter-bank market on Wednesday. At close, the local currency settled at 278.72, a gain of Rs0.03 against the greenback.

Volume on the all-share index jumped to 1,202.17 million from 453.22 million recorded in the previous close.

The value of shares rose to Rs63.00 billion from Rs22.78 billion in the previous session.

Hascol Petrol was the volume leader with 103.47 million shares, followed by K-Electric Ltd with 80.51 million shares, and B.O.Punjab with 68.05 million shares.

Shares of 489 companies were traded on Wednesday, of which 395 registered an increase, 67 recorded a fall, and 27 remained unchanged.