Benchmark index hits record high as geopolitical easing expectations and Saudi financial support drive strong investor inflows
KARACHI: Pakistan’s stock market surged to a historic milestone on Wednesday as the Pakistan Stock Exchange (PSX) crossed the 170,000-point level for the first time, driven by improved investor sentiment, external financial inflows, and easing geopolitical concerns.
The benchmark KSE-100 index climbed sharply by as much as 4,918 points during intraday trading, reaching a peak of 170,553 points. The rally extended gains from the previous session, marking a second consecutive day of strong bullish momentum across the bourse.
Market analysts attributed the surge to growing optimism over potential diplomatic engagement between the United States and Iran, which eased fears of disruptions in global oil supply routes. The development contributed to softer crude oil prices and improved global risk appetite, supporting emerging market equities, including Pakistan.
Investor confidence was further strengthened by Saudi Arabia’s announcement of an additional $3 billion deposit and the extension of a $5 billion financial facility to Pakistan. Officials said the inflows are expected to ease pressure on the country’s external account and help stabilize foreign exchange reserves amid upcoming debt repayments.
Finance Minister Muhammad Aurangzeb confirmed the Saudi support, describing it as part of continued financial cooperation aimed at strengthening Pakistan’s macroeconomic stability. Analysts noted that sustained foreign inflows, combined with improving global commodity trends, could support near-term equity performance, although volatility risks remain tied to international political developments.
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