The PSX ended the week on a positive note as investor confidence improved following lower global oil prices, easing geopolitical concerns, and encouraging economic indicators from Pakistan.
During Friday’s trading session, the benchmark PSX KSE-100 Index climbed sharply, reaching an intraday high of 183,477.57 points, gaining 2,217.90 points (1.22%) from the previous close of 181,259.67. Even at its lowest level during the day, the index remained in positive territory at 181,880.54, reflecting a gain of 620.87 points (0.34%).
Market analysts said the rally was supported by easing tensions in the Middle East and a decline in international oil prices. According to Ahfaz Mustafa, CEO of Ismail Iqbal Securities, the absence of any fresh escalation in the region encouraged investors to return to the market, allowing the PSX to move closer to new record highs.
The positive sentiment followed reports that the United States had not launched any additional military strikes in Iran despite reports of explosions in several Iranian cities, including areas near Bushehr and Konarak. US Central Command later confirmed that no new military action had taken place during that period.
Meanwhile, global oil prices declined after surging earlier in the week. Brent crude slipped to around $76.09 per barrel, while US West Texas Intermediate (WTI) crude traded near $71.93 per barrel. Although both benchmarks remained higher on a weekly basis due to concerns over Middle East supply routes, the pullback in prices eased pressure on financial markets.
The PSX also benefited from strong domestic economic data. According to the State Bank of Pakistan (SBP), workers’ remittances reached $41.6 billion during fiscal year 2025-26, matching official expectations. In June alone, remittances totaled $3.5 billion, showing a 2% increase compared to the same month last year.
Pakistan’s foreign exchange reserves also recorded a significant improvement. The SBP reported that its reserves increased by $1.944 billion to $18.471 billion during the week ending July 3, supported by official financial inflows. As a result, the country’s total liquid foreign reserves rose to $23.989 billion, while commercial bank reserves remained largely stable at $5.518 billion.
Analysts believe that lower oil prices, improving external accounts, and stable foreign exchange reserves have strengthened investor confidence, helping the PSX maintain its upward momentum despite ongoing uncertainty in global markets.
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