KARACHI: The Pakistan Stock Exchange (PSX) continued its recovery on Wednesday as easing geopolitical tensions and falling oil prices boosted investor sentiment, helping the benchmark KSE-100 index close in positive territory for the third consecutive session.
Topline Securities Ltd said the PSX staged a strong recovery as easing international oil prices and improving US-Iran dynamics provided a boost to investor sentiment.
The index rose 1,360.33 points to an intraday high of 172,762.41 before settling at 172,232.51, up 830.43 points, or 0.48 per cent. The positive momentum was supported by softer global oil prices and signs of easing tensions between the US and Iran, which helped revive risk appetite and ease concerns over regional and external-account pressures.
The refinery sector was among the major gainers, with Pakistan Refinery hitting its upper circuit, while Attock Refinery, National Refinery and Cnergyico PK also closed higher amid market speculation that the long-awaited refinery upgrade agreements could be signed as early as Thursday or Friday.
The potential development triggered renewed interest in refinery stocks, with investors positioning themselves ahead of a possible announcement on the agreements.
Index-heavy stocks provided further support to the rally, with Fauji Fertiliser, United Bank, Meezan Bank, Attock Refinery and Engro Holdings emerging as major contributors and collectively adding about 493 points to the index.
Investor participation improved as trading volume rose 20.54pc to 773.59 million shares, while traded value increased 43.25pc to Rs26.5 billion. Cnergyico PK led the volume chart with 150.27m shares traded.
Ali Najib, deputy head of trading at Arif Habib Ltd, said the PSX maintained buoyant momentum, with investor sentiment receiving a boost from developments on the geopolitical front following indirect talks between the US and Iranian delegations through mediators on the sidelines of the UN General Assembly. The reported progress helped ease geopolitical concerns and supported broader market sentiment.
On the domestic front, the arrival of the International Monetary Fund (IMF) staff mission in Pakistan to begin discussions on the fourth review of the $7bn Extended Fund Facility and the third review of the $1.4bn Resilience and Sustainability Facility provided an additional boost to investor confidence.
Analysts expect market sentiment to remain volatile, with selective buying likely if geopolitical tensions continue to ease and oil prices trend lower. However, elevated energy prices, external-sector risks and the IMF reviews will remain key factors shaping market direction.
Published in Dawn, September 24th, 2026
