KARACHI: Pakistan’s stocks surged more than 2% on Thursday, with the benchmark index posting one of its strongest single-day gains in weeks, as investor sentiment improved on hopes of easing tensions between the United States and Iran following renewed diplomatic efforts involving Islamabad.
The benchmark KSE-100 index closed at 168,514.44, up 3,683.02 points, or 2.23%, after touching an intraday high of 168,869.18 points, according to data from the Pakistan Stock Exchange.
“The bulls stood firm in today’s trading session as investor confidence returned strongly to the local bourse, driven by encouraging developments in the ongoing US-Iran negotiations and a decline in international oil prices,” brokerage house Topline Securities said in a market note.
“Growing optimism over easing geopolitical tensions lifted overall sentiment, prompting aggressive buying across key sectors.”
The rally came as investors reacted positively to signs of renewed diplomacy in the US-Iran conflict, which has rattled global energy markets and weighed on investor confidence since joint US-Israeli strikes on Tehran earlier this year triggered a wider regional crisis.
Pakistan has intensified mediation efforts, with Interior Minister Mohsin Naqvi visiting Tehran for talks with senior Iranian officials amid fears of renewed escalation.
Falling international oil prices also helped lift sentiment in Pakistan, a net energy importer highly vulnerable to disruptions in the Strait of Hormuz, through which roughly one-fifth of global oil and gas supplies pass.
Heavyweight stocks including United Bank Limited, Fauji Fertilizer Company, Lucky Cement, Habib Bank Limited and Hub Power Company collectively contributed 1,608 points to the benchmark index, the brokerage said.
Trading activity also strengthened, with total traded volume reaching 729 million shares and turnover rising to Rs34.9 billion ($125.3 million).
