The Pakistan Stock Exchange (PSX) opened on a distinctly bullish note as a renewed whisper of global calm set the tone for trading on Tuesday. The benchmark KSE-100 Index surged sharply in early hours, reflecting a wave of optimism among investors. At 9:39am, the index was hovering around 164,322.07, with gains of 3,730.74 points or 2.32%. It was then trading at 164,782.58, advancing with 4,191.25 points, or 2.61% at 12:34pm.

The rally follows growing expectations of a possible resumption of diplomatic talks between the United States and Iran, reviving hopes of de-escalation in a conflict that has shaken global financial markets. 

The shift in sentiment comes in stark contrast to the previous session, where the market endured heavy losses amid failed negotiations and a spike in oil prices, triggering widespread panic selling across sectors.

Today, however, investors appear to be pricing in a different narrative – one where diplomacy may yet prevail. The prospect of renewed dialogue has eased concerns over supply disruptions and runaway energy prices, both critical variables for Pakistan’s import-heavy economy.

Read: PSX plunges over 6,600 points as US-Iran talks end without deal

Early gains were broad-based, led by index-heavy sectors such as automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs, power generation and refinery, as participants moved to rebuild positions after the recent sell-off. 

The sharp rebound underscores the market’s sensitivity to geopolitical signals, where even tentative progress towards peace can ignite strong bullish momentum.

Despite the upbeat start, analysts caution that volatility may persist, with much depending on whether diplomatic efforts translate into concrete outcomes. “Investors are optimistic about the likely resumption of talks between the US and Iran,” AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune.

Timely affirmation from Saudi Arabia and Qatar to bridge the gap in external financing to be created by the payment of UAE $3.5 billion this month and higher imports due to elevated oil prices have also helped to uplift the sentiment, he added. This is also likely to help in the timely approval of a $1.2 billion disbursement from the International Monetary Fund (IMF) after the approval of its executive board, Ashraf predicted.

Around 65,000 young people will be able to train to enter the defence, clean energy, digital and manufacturing industries under the latest round of Government investment into colleges.

The Government will provide £175 million for 19 new Technical Excellence Colleges across the country to deliver training in sectors deemed important for the future of the UK.

Minister for skills Baroness Jacqui Smith said the investment would help build a pipeline of skilled workers for industries key to Britain’s future.

The Government has identified the areas most likely to help grow the economy, Baroness Smith told the Press Association, and said given the war happening in the Middle East, the UK needed to be able to support different ways of getting its energy.

“The Clean Energy (technical excellence colleges) that we’re announcing today will help us to develop that to speed up our shift to clean energy, to protect our energy supply and to help people with their bills,” she said.

“In the area of defence, where, given the instability and some of the new challenges to our defence in the world, and our contribution to that, this Government has pledged a big increase in defence spending that needs to support our armed forces and our capacity, but that spending also needs to deliver quality jobs to the UK defence industry, who will need skilled people in order to be able to deliver it.”

It is estimated nearly 600,000 additional workers will be needed in these key sectors by 2030, the Department for Education said.

If follows the first wave of 10 technical excellence colleges announced last year specialising in construction.

Prime Minister Sir Keir Starmer said: “I want every young person to know there is a clear route into well‑paid work, whatever their background. These colleges put technical skills front and centre, opening up high‑quality jobs in the industries driving Britain’s future.

“We are backing talent across the country, strengthening our workforce and making sure opportunity is built into the system – not left to chance.”

The colleges may spend the funding they receive on specialist equipment, developing new courses, training more specialist staff, and more.

On Monday, Baroness Smith met students and staff at Milton Keynes College, selected as a technical excellence college for digital, where students are already learning about robotics and artificial intelligence (AI).

It comes after the latest figures showed nearly a million (957,000) 16 to 24-year-olds were “Neet” (not in education, employment or training) in October to December 2025.

The high number of young people who were Neet was a “loss of opportunity” and a “loss for the country”, Baroness Smith told PA.

“That’s why we need really high-quality provision for young people between 16 to 19 to be able to access,” she said.

“We need our schools to better identify the young people who are potentially going to become Neet, we need them to take responsibility for making sure that young people have got the places, the college places, the apprenticeships, the jobs to go into.

“And we need brilliant colleges like Milton Keynes, where I am today, to be supported, to be able to provide the opportunities for young people who would otherwise be lost at such a crucial time in their lives and for the future of the skills that we need as a country as well.”

The Government has set a target for two-thirds of young people to be in higher education, higher-level training or doing a gold standard apprenticeship by age 25.

Jawad Al Midani, 21, started studying at Milton Keynes College for a Level 1 course, and has since worked his way up to studying for a Higher National Diploma (HND) in cyber security.

“I feel as soon as I finish my qualifications I’ll be ready to start my career,” he told PA.

Christian Proctor, 18, who is studying for a Higher National Certificate (HNC) in games design and will go on to an HND next year, said he was confident the skills he was learning would equip him for the next step once he finished college.

The 19 new Technical Excellence Colleges are as follows:

Defence

– Blackpool and The Fylde College– City College Plymouth– Lincoln College– RNN Group– Yeovil College

Clean Energy

– Colchester Institute– South Bank Colleges– The City of Liverpool College– The Education Training Collective– University Centre Somerset College Group

Digital and Technologies

– Birmingham Metropolitan College– Capital City College Group– Gloucestershire College– LTE Group– Milton Keynes College

Advanced Manufacturing

– City of Wolverhampton College– New College Durham– Newcastle and Stafford College Group– Weston College of Further and Higher Education