PSX jumps 2,700 points on Trump-Iran talks news

The first trading session of August brought renewed optimism to the Pakistan Stock Exchange (PSX), where investors returned with aggressive buying, driving the benchmark KSE-100 Index sharply higher.

The first trading session of August brought renewed optimism to the Pakistan Stock Exchange (PSX), where investors returned with aggressive buying, driving the benchmark KSE-100 Index sharply higher. The bullish momentum followed US President Donald Trump’s announcement regarding the commencement of talks with Iran, a development that boosted investor confidence and eased concerns over escalating geopolitical tensions.

During early trading, the KSE-100 Index surged by 2,708 points, climbing to 178,802 points as buying activity intensified across several major sectors. Market participants attributed the rally to improved global sentiment, with hopes that diplomatic engagement between Washington and Tehran could reduce regional tensions and support international financial markets.

Analysts said investors responded positively to the possibility of a more stable geopolitical environment, which could help stabilize global energy prices and encourage foreign investment in emerging markets, including Pakistan. Strong buying interest was witnessed in leading banking, energy, cement, and fertilizer stocks, contributing to the market’s upward trajectory.

Despite the robust performance of the PSX, Asian equity markets presented a mixed picture. Japan’s benchmark Nikkei Index declined by 1.5 percent amid continued investor caution, while South Korea’s Kospi recorded a steeper fall of 5.25 percent, reflecting selling pressure in major technology and export-oriented shares.

In contrast, Hong Kong’s Hang Seng Index remained in positive territory, posting a modest gain of 0.1 percent as investors welcomed signs of easing geopolitical uncertainty.