The Pakistan Stock Exchange (PSX) recorded gains on Tuesday as easing international oil prices and renewed hopes for diplomatic progress between the United States and Iran improved investor sentiment.
Read More: PSX losses by more than 3,000 points amid rising oil prices
The benchmark KSE-100 Index reached an intraday high of 178,370.45 points, gaining 2,442.72 points or 1.39 per cent compared with the previous close. During trading, the index also touched a low of 176,930.74 points, which was still 1,003.01 points or 0.57 per cent higher.
Market analysts said investor confidence remained closely linked to developments surrounding the US-Iran conflict, particularly because changes in global oil prices directly affect Pakistan’s economy and external payments.
Ahfaz Mustafa, CEO of Ismail Iqbal Securities, said market movements were largely dependent on international developments. He noted that any news suggesting lower oil prices was being viewed positively by investors, while reports of possible negotiations between Washington and Tehran had also supported market sentiment.
Global oil prices declined on Tuesday as investors weighed fresh diplomatic efforts against continued military tensions in the Middle East. Brent crude futures fell around 0.9 per cent to $88.44 per barrel, while US West Texas Intermediate crude also dropped by around 0.9 per cent.
Reports indicated that mediators had proposed a 10-day ceasefire between the US and Iran, raising hopes that previous diplomatic efforts could resume. However, analysts cautioned that significant differences remained between both sides.
The market also monitored regional energy security concerns after reports of incidents involving vessels near the Strait of Hormuz, a key route for global oil shipments. Additional concerns emerged after Yemen’s Iran-aligned Houthi group announced plans for a naval blockade against Saudi Arabia.
On the domestic front, investors also welcomed Pakistan’s diplomatic engagement with Canada. During Canadian Foreign Minister Anita Anand’s visit, both countries agreed to enhance cooperation in trade, investment, agriculture, mining, renewable energy and development sectors.
Read More: PSX sheds 289 points amid surging oil, commodity prices
The KSE-100 Index had closed slightly higher on Monday, gaining 124.95 points or 0.07 per cent to settle at 175,927.74 after a volatile trading session.