PSX crosses 170,000 points on Middle East talks hopes, Saudi funding pledge

KARACHI: Pakistan’s stock market extended its rally on Wednesday, with the benchmark index crossing the 170,000-point level for the first time, driven by strong investor sentiment and improved macroeconomic and geopolitical outlook.

The Pakistan Stock Exchange KSE-100 index surged as much as 4,698 points at the opening of trade, rising to 170,333 points, before extending gains to hit an intraday high of 170,553 points, up 4,918 points or about 2.9 per cent.

The rally marked a second consecutive day of strong gains on the bourse, following a sharp recovery in the previous session.

Market participants said the bullish momentum was supported by easing concerns over external pressures and improved global risk sentiment, particularly amid expectations of diplomatic engagement between the United States and Iran.

International media reports citing US President Donald Trump suggested talks between Washington and Tehran could advance, a development that helped ease concerns over potential disruptions to oil supply routes and pushed crude prices lower.

Global equities also edged higher, while oil prices softened on hopes of diplomatic progress.

Separately, Pakistan also received fresh external financial support from Saudi Arabia, which announced an additional $3 billion deposit and the extension of a $5 billion facility, according to Finance Minister Muhammad Aurangzeb.

Analysts said the inflows are expected to provide near-term support to Pakistan’s external account position and help stabilise foreign exchange reserves, which remain under pressure due to upcoming external debt repayments.

A spokesperson for the Saudi Ministry of Finance confirmed the deposit, saying it reflects continued support for Pakistan’s external financing needs.

The rally on the PSX also followed a strong performance in the previous session, when the index gained around 5,000 points on renewed optimism over easing geopolitical tensions.

Analysts said sustained foreign inflows and improved sentiment around global commodity prices could continue to support equities in the near term, although volatility risks remain tied to external developments.