PSX surges over 4,700 points as Saudi funds lift market sentiment

Benchmark KSE-100 Index crosses 170,000 within opening minutes of trading

KARACHI:

Buying momentum continued at the Pakistan Stock Exchange (PSX) on Wednesday, with investors reacting positively to the Kingdom of Saudi Arabia’s commitment of an additional $3 billion in deposits for Pakistan, boosting market sentiment early in the session.

The benchmark KSE-100 Index, at 12:34pm, stood at 170,347.47 – up 4,712.63 points, or 2.85%. Trading commenced on a cheery note, and by 9:34am the benchmark index had surged by 4,287.34 points, or 2.59%.

The strong upward move also pushed the index above the key 170,000 level within the opening minutes of trading. The rally maintained strength through the session, with the index standing at 170,347.47 at 12:34pm.

Market participants attributed the bullish trend to multiple positive triggers, including fresh financial inflows from Saudi Arabia, improving geopolitical sentiment amid talks of a second round of ceasefire discussions between Iran and the United States, and better-than-expected corporate earnings, which further reinforced investor confidence.

Read: PSX recovers on US-Iran diplomatic signals

The combination of supportive external financing, easing regional tensions, and strong corporate performance fuelled broad-based buying across key sectors, keeping the market firmly in positive territory.

“Anticipation of the resumption of US–Iran talks, along with Saudi Arabia’s approval of $3 billion for Pakistan and the three-year extension of its existing $5 billion deposit, has boosted investor sentiment," AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune.

Meanwhile, better-than-expected results from United Bank (UBL), driven by gains on securities sales and stronger-than-forecast deposit growth, have supported the market in maintaining its momentum, Ashraf said.