KARACHI: Positive sentiment returned to the Pakistan Stock Exchange (PSX) on Wednesday, with the benchmark KSE-100 Index gaining more than 4,000 points during intra-day trading after several sessions of sustained selling pressure.

By 1:55pm, the KSE-100 Index was trading at 177,189.87, up 4,039.46 points or 2.33%, reflecting broad-based recovery across key sectors.

Buying activity was seen in automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation firms and refineries. Index-heavy stocks including HBL, MCB, MEBL, MARI, OGDC, POL, PPL, HUBCO and PSO traded in positive territory.

The rebound followed encouraging macroeconomic data, as Pakistan’s current account returned to surplus in January 2026. According to the State Bank of Pakistan (SBP), the country recorded a surplus of $121 million in January, compared to a deficit of $265 million in December 2025. On a year-on-year basis, the external balance also improved from a deficit of $393 million in January 2025, supported largely by higher workers’ remittances.

The previous session had seen continued pressure at the PSX, with the KSE-100 Index closing down 1,303.52 points, or 0.75%, at 173,150.42 amid selling by both foreign and local investors.

Globally, Asian markets traded higher on Wednesday despite lingering concerns over artificial intelligence-related investments. Japan’s Nikkei 225 rose 0.93% to 57,090.14, while Australia’s S&P/ASX 200 gained 0.5%. Several Asian markets, including mainland China and Hong Kong, remained closed for Lunar New Year holidays.

On Wall Street, U.S. indices ended marginally higher overnight. The Dow Jones Industrial Average rose 0.07%, the S&P 500 gained 0.10%, and the Nasdaq Composite advanced 0.14%, recovering from early-session losses amid investor caution over technology sector valuations.

Market analysts said improved external account data and renewed buying in heavyweight stocks helped restore confidence at the PSX after recent volatility.