KARACHI: The Pakistan Stock Exchange (PSX) witnessed a resurgence in buying interest on Thursday as investors targeted value opportunities across key sectors. This shift helped the index recover previous losses, bolstered by declining oil prices and renewed optimism regarding a potential peace agreement between the US and Iran, despite intermittent tensions testing the fragile ceasefire.
According to Topline Securities Ltd, the PSX rebounded from a mild overnight pullback to close firmly in positive territory, with buyers seizing control during the second half of the trading session. The benchmark index experienced a period of volatility before hitting an intraday high of 1,265 points, eventually settling at 171,175—an increase of 984 points, or 0.58 per cent.
The upward momentum was largely fueled by broad-based buying, supported by a perceived easing of geopolitical tensions in the Middle East. The lack of a major escalation in US-Iran dynamics, which contributed to the stabilization of global oil prices, played a critical role in restoring investor confidence.
Heavyweight stocks provided significant support to the index. Notable contributors included Fauji Fertiliser Company Ltd, Pakistan Petroleum Ltd, Oil and Gas Development Company Ltd, Lucky Cement Ltd, and Pakistan Telecommunication Company Ltd, which collectively added approximately 458 points to the benchmark’s gains.
Market activity saw a marked improvement over the previous session, with total traded volume rising 26.31 per cent to 697 million shares. The total traded value also climbed by 9.99 per cent, reaching Rs26.1 billion. Beco Steel Ltd led the session in terms of volume, with 113 million shares traded.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), noted that while investor sentiment remained cautiously optimistic due to hopes for diplomatic progress between the US and Iran, the lack of a formal agreement continued to limit overall risk appetite. Despite this, selective buying in large-cap stocks ensured the index closed in the green following the overnight dip.
Tensions flared overnight as the US and Iran faced off, involving Kuwait and Bahrain in the conflict, creating risks that could potentially jeopardize negotiations for a temporary peace deal.
On the domestic economic front, the federal government is scheduled to present its 2026-27 budget on June 10.
Market analysts suggest that the possibility of a diplomatic breakthrough between the US and Iran will likely continue to support investor sentiment. However, they cautioned that the PSX will remain sensitive to geopolitical headlines, with near-term performance driven largely by stock-specific developments until clearer clarity emerges.