Pakistani shares climbed sharply on Tuesday, with the benchmark KSE-100 Index of the Pakistan Stock Exchange rising 5,448 points, or 3.13 per cent, to finish at 179,335 points. Investors responded to signs that tensions between the United States and Iran were cooling, along with a fall in international oil prices.
The index had closed at 173,886.69 points in the previous session and reached an intraday high of 179,424 points. Trading resumed after a long weekend, as the stock market had stayed shut on Monday for Iqbal Day.
Trump’s comments ease fears over oil supply
The buying followed remarks by US President Donald Trump that further American military action against Iran was not necessary at this stage. His comments fuelled hopes of de-escalation in the Middle East conflict and reduced concerns that oil supplies from the region could be disrupted.
Also read: KSE-100 index gains 8,000 points in two sessions on PSX · Oil prices fall as Trump signals restraint on Iran strikes
Crude benchmarks had already weakened on Monday, with Brent futures down around 4.65 per cent and West Texas Intermediate falling 3.51 per cent. Global stocks advanced on Tuesday as Brent slipped further amid hopes of progress in talks between Washington and Tehran.
Gains spread across key sectors and heavyweight stocks
Buying extended across several sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies and power generation. Heavyweight stocks, among them Mari Energies, Oil and Gas Development Company, Pakistan Petroleum, Pakistan State Oil, Hub Power, Habib Bank, MCB Bank, Meezan Bank and United Bank, traded in positive territory.
Earlier in the session, by 3:15pm, the index had already added about 5,171 points, or 2.97 per cent, on strong buying in these key sectors.
Analyst sees room for monetary easing
Saad Hanif of Ismail Iqbal Securities told Business Recorder that the rally reflected a repricing of risk, as easing geopolitical tensions reduced the premium attached to Pakistani equities. He said cheaper oil could also ease the import bill, the current account and inflation, potentially opening room for monetary easing if the trend continued.
External figures added to the upbeat mood. Workers’ remittances rose 13.8 per cent year-on-year to $3.892 billion in October 2026, supporting expectations about the country’s external account. The previous week, the KSE-100 had gained 7,477.44 points, or 4.5 per cent, closing at 173,886.69 points, its strongest weekly performance in nearly six months.
Asian and European markets also post gains
The upturn was not confined to Pakistan. Asian and other international markets also recorded gains as Middle East worries eased and oil prices fell. South Korea’s KOSPI advanced 4.4 per cent and Japan’s Nikkei gained 2.9 per cent, while European markets opened higher.
Investors were also watching for US inflation data, which could shape expectations about the Federal Reserve’s future interest rate decisions.
