The benchmark KSE-100 index at the Pakistan Stock Exchange continued its strong upward trajectory on Wednesday, climbing more than 4,300 points during intraday trading and extending gains for a second straight session.
Market optimism has been fueled by expectations that diplomatic talks between the United States and Iran will move into a second round. US President Donald Trump indicated that the next phase of discussions is likely to take place in Islamabad.
During the session, the KSE-100 index jumped by 4,301.24 points, or 2.60%, reaching 169,936.08 points compared to the previous close of 165,634.84 points.
This rally follows a sharp rebound on Tuesday, when the market surged by around 5,000 points. The recovery was largely driven by renewed hopes of US-Iran negotiations resuming, which helped ease concerns over potential oil supply disruptions and led to a drop in global oil prices.
Global markets also reacted positively, with US equities advancing and oil prices declining further after Trump’s remarks. Investors are increasingly hopeful that an agreement could lead to the reopening of the strategically important Strait of Hormuz, allowing smoother crude oil flows.
Analysts believe that continued diplomatic engagement and the possibility of further negotiations will help sustain positive sentiment and keep market momentum strong in the near term.
Adding to the upbeat outlook, Saudi Arabia has recently committed an additional $3 billion in financial support to Pakistan and extended its existing $5 billion facility for three more years, further strengthening investor confidence.