The Pakistan Stock Exchange staged a strong recovery on Tuesday, with its benchmark KSE-100 Index gaining significant ground in early trading after a steep decline in the previous session.
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The KSE-100 Index climbed to an intraday high of 165,150.36, rising 4,559.03 points or 2.84%. It also touched a low of 163,416.54, still up 2,825.21 points or 1.76%, compared to the previous close of 160,591.33. The rebound followed a major downfall in the last session, when the index had plunged nearly 6,600 points.
Market participants attributed the recovery to improved global sentiment, particularly gains across Asian markets and a sharp decline in oil prices. The easing of crude prices raised hopes of reduced inflationary pressures and better economic outlook for import-dependent economies like Pakistan.
Investor confidence was further supported by expectations of renewed US-Iran talks, which could stabilise regional tensions and global energy markets. Reports suggested that both sides remain open to dialogue despite recent setbacks, with Pakistan playing a potential mediatory role.
Analysts noted that optimism over possible financial inflows also contributed to the bullish momentum. Reports of a potential deposit from Saudi Arabia helped strengthen sentiment, as Pakistan navigates upcoming external repayment obligations.
Additionally, Prime Minister Shehbaz Sharif reaffirmed Pakistan’s engagement in facilitating dialogue between Washington and Tehran, signalling continued diplomatic efforts.
Global oil markets also reacted to the possibility of negotiations, with prices falling notably as traders anticipated a diplomatic breakthrough. Lower oil prices tend to support equities by easing cost pressures on businesses.
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