PSX gains over 2,200 points on positive outlook

KSE-100 Index climbed as high as 183,477.57 points, marking an increase of 2,217.90 points (1.22%) from the previous close of 181,259.67.

KARACHI: The Pakistan Stock Exchange (PSX) extended its bullish momentum on Friday, with the benchmark KSE-100 Index posting strong gains during intraday trading as easing global oil prices, reduced geopolitical tensions in the Middle East and encouraging domestic economic indicators lifted investor confidence.

During the trading session, the KSE-100 Index climbed as high as 183,477.57 points, marking an increase of 2,217.90 points (1.22%) from the previous close of 181,259.67. Even the session’s lowest level remained firmly in positive territory at 181,880.54, reflecting a gain of 620.87 points (0.34%), highlighting sustained buying interest across key sectors.

Market analysts attributed the positive performance to improving global sentiment after fears of a wider conflict in the Middle East eased. Investors were encouraged by the absence of any confirmed fresh US military action against Iran, while declining international crude oil prices also supported equities.

Chief Executive Officer of Ismail Iqbal Securities, Ahfaz Mustafa, said the market responded positively as concerns over further escalation in the region subsided.

He noted that lower oil prices and the lack of new military developments had created room for investors to return to the market, allowing the benchmark index to move closer to new record highs.

Global markets also reacted positively after reports indicated that no fresh US strikes had taken place in Iran. Although Iranian media reported several explosions near Bushehr, home to one of Iran’s nuclear facilities, and in other southern cities, US Central Command clarified that American forces had not conducted any military operations in Iran during the previous several hours.

The clarification helped calm investor nerves after heightened tensions earlier in the week had triggered sharp gains in oil prices.

International crude prices continued to retreat on Friday after posting losses in the previous session. Brent crude futures slipped to around $76.09 per barrel, while US West Texas Intermediate (WTI) crude traded near $71.93 per barrel.

Despite the recent decline, oil prices remained on track for weekly gains due to ongoing concerns over possible disruptions to Middle East energy supplies. Analysts said a significant risk premium continues to be reflected in prices because shipping activity through the Strait of Hormuz remains below normal levels, although expectations of renewed diplomatic engagement between Washington and Tehran have limited further increases.

Apart from improving global conditions, investors also welcomed encouraging developments on Pakistan’s economic front.

According to the State Bank of Pakistan (SBP), workers’ remittances reached $41.6 billion during fiscal year 2025-26, exceeding the previous year’s level and remaining within the government’s projected range of $41 billion to $42 billion. In June alone, overseas Pakistanis sent $3.5 billion, representing a 2% increase compared with the same month last year.

The central bank also reported a significant improvement in the country’s foreign exchange reserves. During the week ending July 3, SBP-held reserves increased by $1.944 billion, reaching $18.471 billion due to official financial inflows.

As a result, Pakistan’s total liquid foreign exchange reserves rose to $23.989 billion, while reserves held by commercial banks remained broadly stable at $5.518 billion.