The KSE-100 Index witnessed a strong relief rally on Thursday, climbing over 3,680 points to close above 168,500 as positive global cues and easing oil prices boosted investor sentiment across the board.

The KSE-100 Index closed at 168,514 points, advancing 3,683 points (+2.23% DoD) in a broad-based relief rally as sentiment improved sharply across the board. "Trading activity also picked up versus recent sessions, with 270 million shares traded in the KSE-100 universe, signalling healthier participation after several muted days, although volumes still remain below phases of full risk-on momentum," said Ahmed Sheraz of KASB KTrade.

Sector-wise, gains were widespread with commercial banks, fertilisers, cement, E&Ps and power names driving the move, supported by strength in stocks including UBL, FFBL, FCCL, HUBC, HBL, ENGROH, PPL, OGDC and NBP. Volume leaders included BOP (29m shares), KEL (26m) and TRG (17m), reflecting renewed appetite in selective high-beta counters.

On the macro front, sentiment received support from the sharp pullback in global oil prices, with crude retreating toward US$105/bbl after reports that a draft understanding between the US and Iran could be circulated within the next 24–48 hours, raising expectations of easing regional tensions and improved supply outlook.

Pakistan’s diplomatic engagement aimed at facilitating dialogue also remained in focus. Meanwhile, positive cues from Asian and US equity markets added to local risk appetite.

Looking ahead, the market remains headline-driven, with near-term direction likely to depend on developments surrounding US-Iran negotiations, Strait of Hormuz dynamics, oil price trajectory, and follow-through in foreign and local risk sentiment. Continued easing in energy markets could remain supportive, but volatility tied to geopolitical headlines is expected to persist.