Pakistan Stock Exchange (PSX) opened in the green on Tuesday, registering a significant recovery amid hopes for the resolution of the Middle East war, even though the US has imposed a blockade on Iranian ports, reported 24NewsHD TV channel.
During the intraday trading, the PSX’s benchmark KSE-100 index gained 3,893.18 points to reach 164,484.51 points or 2.37%. At the end of business for the day, the index registered an increase of 5,043.51 points or 3.04 percent to 165,634.84 points.
The sharp rise reflected sustained investor interest and positive momentum in the equities market, with the index continuing its upward trajectory.
An economic expert said PSX has moved higher, tracking gains in Asian equities and decreasing oil prices, as sentiment shifted to risk-on amid expectations of renewed US-Iran talks, with Pakistan playing a mediatory role. "Additional support came from reports of a potential Saudi deposit, further boosting investor confidence," he added.
Meanwhile, Asian stocks advanced while oil prices and the safe-haven dollar fell on Tuesday as investors banked on a resolution to the Middle East war.
Sources told Reuters that Washington and Tehran have left the door open to dialogue, and a US official said there was forward motion on trying to get to an agreement.
Investors latched on to hopes for an off-ramp, lifting the overall market mood and sending MSCI's broadest index of Asia-Pacific shares outside Japan up nearly 2%, while Japan's Nikkei rose more than 2%.
Nasdaq futures advanced 0.2% while S&P 500 futures held steady, following an overnight rally on Wall Street, while EUROSTOXX 50 futures gained 0.41% and DAX futures added 0.6%.
Reporter: Ahsan Abbasi