KARACHI – Pakistan Stock Exchange (PSX) witnessed a strong rally on Wednesday, as the benchmark KSE-100 Index climbed by more than 4,000 points, driven by renewed investor confidence amid optimism over possible US-Iran negotiations.
The KSE-100 Index surged by 4,544.19 points, or 2.74%, closing at 170,179.03 points compared to the previous session’s 165,634.84 points.
Market analysts attributed the bullish trend to improving global sentiment and expectations of easing geopolitical tensions. Ahfaz Mustafa, CEO of Ismail Iqbal Securities, noted that hopes for a resolution to the Middle East conflict in the coming days, along with declining oil prices, have boosted investor confidence.
He added that positive developments, including anticipated financial support from Saudi Arabia and Pakistan’s increasing global relevance, have further strengthened market sentiment.
Ahsan Mehanti of Arif Habib Limited said equities rebounded sharply as investors responded to indications of a possible second round of US-Iran peace talks, along with remarks suggesting the conflict could soon de-escalate.
He further highlighted that rising global markets and expectations of around $3 billion in financial assistance from Saudi Arabia acted as key drivers behind the market’s upward momentum.
Meanwhile, US President Donald Trump indicated that talks between American and Iranian officials could resume in Pakistan within the next two days. He expressed optimism about progress in negotiations and suggested that extending the current ceasefire, set to expire on April 21, may not be necessary.
In a separate development, Saudi Arabia has agreed to extend additional financial support of $3 billion to Pakistan to help address external financing requirements, particularly in light of upcoming debt obligations to the United Arab Emirates.
Finance Minister Muhammad Aurangzeb stated that the fresh assistance comes in addition to the extension of a $5 billion deposit rollover by Riyadh, providing further relief to the country’s financial position.
The government aims to build foreign exchange reserves above $18 billion by June under its $7 billion programme with the International Monetary Fund (IMF).
The officials said the Saudi support would play a vital role in strengthening Pakistan’s external account and stabilising its foreign reserves during a crucial period.
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