KARACHI: The Pakistan Stock Exchange (PSX) rallied sharply on Tuesday, with the benchmark KSE-100 Index gaining 1,756.89 points, or 1.04 percent, to close at 170,710.59 points, as easing global oil prices and improving domestic political sentiment boosted investor confidence.
The index closed higher compared to the previous session’s 168,953.70 points, reflecting broad-based buying across key sectors.
Market analysts attributed the rally to a decline in international oil prices following a temporary de-escalation in tensions between Iran and Israel, which had previously driven volatility in global markets.
“PSX is rising due to international oil prices coming down after yesterday’s escalation on the Iran-Israel front ended,” said Ahfaz Mustafa, chief executive officer of Ismail Iqbal Securities.
He added that expectations regarding the finalisation of the federal budget, expected to be presented on June 12, also contributed to improved market sentiment.
Oil prices retreated on Tuesday, reversing gains from the previous session after Iran and Israel signalled a pause in hostilities following diplomatic appeals, although both sides cautioned that tensions could resume.
Asian equity markets also recovered from earlier losses, supported by renewed interest in technology stocks and easing geopolitical concerns. Wall Street similarly rebounded as investors returned to risk assets following recent volatility linked to interest rate expectations and tech valuation concerns.