ISLAMABAD — Pakistan’s stocks market climbed on Tuesday as hopes of easing tensions in the Middle East lifted investor sentiment, supported by reports suggesting that Pakistan may be playing a mediating role between the United States and Iran.
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The Pakistan Stock Exchange (PSX) benchmark KSE-100 Index traded between a high of 157,442.68, up 4,702.31 points (3.08%), and a low of 154,054.53, up 1,314.16 points (0.86%), compared to the previous close of 152,740.37.
“The market opened on a positive note, driven by investor optimism surrounding the potential easing of geopolitical tensions and Pakistan’s perceived geopolitical relevance following media reports suggesting the country may be mediating between the United States and Iran,” said Huzaifa Riaz, Director at Mayari Securities (Pvt) Limited.
The boost came after Donald Trump announced a five-day postponement of potential military strikes against Iranian power plants, citing “very good and productive” discussions aimed at a “complete and total resolution of hostilities in the Middle East.” However, Iran’s Fars news agency reported no direct communication with the US and confirmed that the Strait of Hormuz would remain effectively closed.
Asian equities also rose on the headlines, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Taipei, and Manila posting gains, though some gains were trimmed as trading progressed. Oil prices edged higher following Monday’s plunge amid continued uncertainty over Middle East developments.
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Analysts said market direction would remain closely linked to the Gulf situation, while investors also monitor post-Ramazan participation and upcoming inflation data. AKD Research noted that any de-escalation could trigger a stronger rebound, as valuations are attractive, with forward price-to-earnings at 6.6 times. Arif Habib Limited Research cited a P/E ratio of 7.5 times and a dividend yield of roughly 6.8%.