ISLAMABAD: The Pakistan Stock Exchange edged higher on Tuesday as improving risk appetite, easing geopolitical tensions, and a benign inflation print supported selective buying ahead of the corporate results season.
Institutional investors led cautious accumulation, pushing the benchmark index into positive territory during the session.
Index gains on selective institutional buying
The KSE-100 Index climbed to an intraday high of 187,518.78, up 2,460.95 points or 1.33 percent, before easing to a low of 185,545.92, still higher by 488.09 points or 0.26 percent from the previous close of 185,057.83. Market participants cited improved confidence and stock-specific activity as key drivers of the advance.
Huzaifa Riaz, Director at Mayari Securities (Pvt) Limited, said the market staged a healthy recovery as investor confidence improved. He added that a more positive geopolitical backdrop and selective buying led to higher institutional inflows. Moreover, he noted that January inflation data strengthened the view that the disinflation trend remains supportive for equities.
US-Iran talks and CPI data support outlook
Investor sentiment received a boost after Iranian President Masoud Pezeshkian said he ordered the start of talks with the United States on the nuclear issue. Both sides signalled room for diplomacy, while Washington maintained naval deployments in the region, easing immediate escalation concerns.
On the domestic front, Pakistan’s Consumer Price Index rose to 5.8 percent in January from 5.6 percent in December but stayed within the State Bank of Pakistan’s 5–7 percent target band. On a month-on-month basis, CPI increased 0.4 percent after a similar decline in December.
For the first seven months of FY26, average inflation stood at 5.24 percent, down from 6.5 percent a year earlier.
Meanwhile, upstream pressures continued to ease. The Wholesale Price Index averaged 0.29 percent in 7MFY26 compared with 3.83 percent last year and declined 0.2 percent month-on-month in January. Analysts said these trends could support equities, barring unexpected energy price shocks.
