“Peace hath her victories, no less renowned than war.” The old adage rang true at the Pakistan Stock Exchange (PSX) on Wednesday, as easing geopolitical tensions ignited a strong revival in investor confidence, fuelling a powerful market rebound.

The market opened on a vibrant note and rejoiced in the news that the US President signalled a temporary pause in operations to escort ships through the Strait of Hormuz, citing progress towards a broader agreement with Iran. The development injected a strong sense of relief into the financial landscape, prompting investors to return aggressively to equities.

A strong bullish trend dominated the session throughout the session, with the index oscillating between an intra-day high of 172,088.58 and a low of 167,354.44. Eventually, the benchmark KSE-100 index added a staggering 6,962.29 points, or 4.23%, to close at 171,704.76.

KTrade Securities’ Ahmed Sheraz noted that the KSE-100 delivered a powerful rebound, closing at 171,704, up 6,962 points (+4.23% DoD), marking a standout session with broad-based strength. Momentum remained firmly positive throughout the day, supported by strong volumes in KSE100 of 562 million shares, reflecting aggressive participation and renewed risk appetite after recent volatility.

Sector-wise, gains were widespread with commercial banks, cement, exploration & production, and oil leading the charge. Key index movers included United Bank, Lucky Cement, Pakistan Petroleum, Fauji Fertiliser, Oil & Gas Development Company, National Bank, Hub Power and others, all contributing meaningfully to the upside, signalling institutional as well as retail alignment on the bullish side.

The primary trigger remained the sharp correction in international oil prices, which have fallen significantly from recent highs near $126/bbl to around $98/bbl, easing inflationary and external account concerns. This decline was fuelled by improving geopolitical sentiment, particularly around easing tensions in the Strait of Hormuz and progress in US-Iran negotiations.

Looking ahead, the market’s near-term direction hinges on the outcome of these geopolitical developments. A formal agreement within the next 24–48 hours could further stabilise oil and sustain bullish momentum, while any setback may reintroduce volatility. For now, sentiment remains constructive, with improving macros and external cues setting the stage for continued recovery, Sheraz wrote.

Overall trading volume increased to 1.20billion shares compared with Tuesday’s total of 453.2million. Value of traded shares stood at Rs63billion. Shares of 489 companies were traded. Of these, 395 jumped, 67 declined, and 27 remained unchanged. Hascol Petroleum was the volume leader with trading in 103.5million shares, gaining Rs1.14 to close at Rs22.69.