Pakistan’s stock market rebounded on Tuesday as easing global oil prices and renewed optimism over possible US-Iran diplomacy improved investor sentiment following the previous session’s sharp losses.
During intraday trading, the benchmark KSE-100 Index at the Pakistan Stock Exchange climbed to a high of 164,309.64 points, gaining 2,504.62 points, or 1.55 per cent.
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However, some gains were later trimmed as the index retreated to an intraday low of 162,563.58 points, still up 758.56 points, or 0.47 per cent, from Monday’s closing level of 161,805.02.
Market analysts linked the recovery to softer oil prices and signs of diplomatic progress between the United States and Iran, which helped ease concerns about further escalation in the Middle East.
Independent investment analyst AAH Soomro said lower oil prices, statements by US President Donald Trump, and diplomatic engagement between Saudi Arabia and Iran had boosted investor confidence.
Trump recently indicated that military strikes on Iran had been delayed amid what he described as serious negotiations, raising hopes that tensions in the region may ease.
Global energy markets remain sensitive to developments surrounding the conflict and the security situation in the Strait of Hormuz, a critical route for international oil shipments.
International benchmark Brent crude traded near $109 per barrel, while West Texas Intermediate (WTI) hovered around $107, reflecting modest declines from recent highs.
Asian stock markets showed mixed performance, with Japan’s Nikkei rising while South Korean and broader Asia-Pacific indices recorded declines.
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The rebound at the PSX follows a sharp selloff in the previous session, when the KSE-100 Index dropped 3,791.05 points, or 2.29 per cent, amid widespread selling pressure and cautious investor sentiment.
Analysts say the local market is likely to remain highly sensitive to geopolitical developments, oil price movements and signals from ongoing US-Iran diplomatic efforts.