The Pakistan Stock Exchange (PSX) posted strong gains on Tuesday as investor sentiment improved amid optimism over potential diplomatic progress in the Middle East conflict. The benchmark KSE-100 Index climbed to an intraday peak of 149,684.93 points, rising by 2,841.96 points, or 1.94%, driven by renewed confidence in regional stability prospects.
Market analysts linked the rally to hopes that negotiations or de-escalatory signals in the ongoing US-Iran confrontation could ease geopolitical risks that have weighed on global markets and regional investor confidence. Oil prices also showed signs of easing, which supported equities as energy costs and conflict fears had previously dampened trading activity.
The PSX’s performance follows recent volatility, where concerns over the Middle East peace process and economic pressures had previously triggered sell-offs and risk-off sentiment among investors.