Islamabad: Pakistan’s benchmark stock index climbed on Tuesday as investors showed renewed confidence, buoyed by signs of progress in US–Iran nuclear diplomacy and a favourable inflation report, while targeted institutional buying lifted the market ahead of the earnings season.
The Pakistan Stock Exchange (PSX) saw gains across the board, with the KSE-100 Index hitting an intraday peak of 187,518.78, up 2,460.95 points (1.33 %), and a session low of 185,545.92, still higher than the previous close of 185,057.83.
Market analysts said investor sentiment improved due to decreasing geopolitical risk and selective inflows from institutional buyers. “The bourse staged a solid comeback as confidence strengthened, backed by positive global cues and systematic buying,” remarked Huzaifa Riaz of Mayari Securities.
An important factor lifting morale was news that Iranian President Masoud Pezeshkian has initiated talks with the United States on the nuclear issue, signalling diplomatic engagement between the two countries.
Economic data also supported the optimism, as Pakistan’s January Consumer Price Index (CPI) edged up to 5.8 % from December’s 5.6 %, staying within the State Bank of Pakistan’s 5–7 % target range — a sign that inflation remains manageable for the equities market.
On a monthly comparison, CPI rose 0.4 % in January after a 0.4 % drop in December, and average inflation for the July–January period came in at 5.24 %, below last year’s 6.5 %.
The wider economic picture also shows reduced upstream pressures, with the Wholesale Price Index (WPI) averaging 0.29 % in the first seven months of the fiscal year, down sharply from 3.83 % a year earlier — a trend that could ease retail prices over time.
In the prior session on Monday, the KSE-100 had risen 883.35 points (0.48 %), closing at 185,057.83 amid similar optimism around geopolitical developments and relief from regional tensions.