PSX jumps over 4,700 points after Saudi funding support boosts sentiment

KARACHI: The Pakistan Stock Exchange (PSX) extended its gains on Wednesday as investors responded positively to Saudi Arabia’s decision to provide Pakistan with an additional $3 billion in deposits, helping lift sentiment at the start of trading.

The benchmark KSE-100 Index was at 170,347.47 by 12:34pm, showing an increase of 4,712.63 points, or 2.85%, according to market data cited in the report. The market opened on a strong note, and by 9:34am the index had already climbed 4,287.34 points, or 2.59%.

The early rally also carried the benchmark above the 170,000-point mark within minutes of the opening bell. The upward momentum remained intact through the session, with the index holding at 170,347.47 at 12:34pm.

Market participants linked the bullish trend to a combination of supportive developments. These included fresh financial inflows from Saudi Arabia, an improved geopolitical outlook amid expectations of a second round of ceasefire-related talks between Iran and the United States, and corporate earnings that came in better than expected.

These factors together encouraged broad-based buying in major sectors and kept the market firmly in positive territory during the session.

"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 said.

He also said stronger-than-expected financial results from United Bank (UBL) added to the market’s momentum. According to Ashraf, the bank’s performance was supported by gains on securities sales and deposit growth that exceeded forecasts.

The combination of external financing support, easing regional tensions and stronger corporate performance helped sustain buying interest as trading progressed. The market’s move above the 170,000 level early in the day reflected the strength of investor confidence following the latest Saudi commitment and other positive triggers highlighted by market observers.

Key drivers behind the rally

The report identified three main reasons for the sharp rise in the benchmark index: the additional Saudi deposits for Pakistan, improving sentiment linked to possible renewed US-Iran engagement, and better-than-expected company earnings. Together, these developments reinforced confidence among investors and supported a broad market advance.

By midday, the KSE-100 Index remained significantly higher, underlining the strength of the rally as buying momentum continued across the trading session.