Pakistan stock market rebounds over 4,300 points — Here is why

Pakistani equities recovered on Tuesday, buoyed by easing oil prices and renewed optimism over potential US-Iran talks, which lifted overall investor sentiment.

The Pakistan Stock Exchange's (PSX) benchmark KSE-100 index was last seen trading at 164,923.14, up 4,329 points or 2.7 per cent. The KSE-30 index also advanced 1,302.99 points or 2.68 per cent to 49,762.75.

The upmove came as global oil prices declined sharply, with markets betting on a possible diplomatic breakthrough between the United States and Iran. Brent crude fell 2.7 per cent to $96.66 per barrel, while US crude dropped 3 per cent to $96.13, as traders assessed reports that both sides remain open to dialogue despite stalled negotiations over the weekend.

News agency Reuters reported, citing sources, that both sides had kept the door open to dialogue, while a US official pointed to forward movement towards a potential agreement.

The sharp rebound in Pakistani equities follows a steep decline in the previous session, when the KSE-100 index had slumped 6,600.05 points or 3.95 per cent to close at 160,591.33.

Meanwhile, Indian equity markets remained shut on Tuesday on account of Dr Baba Saheb Ambedkar Jayanti and are set to resume trading on Wednesday.

On Monday, Indian benchmarks extended their losses after a brief one-day pause, dragged lower by broad-based selling across sectors. The 30-share BSE Sensex fell 702.68 points or 0.91 per cent to settle at 76,847.57, while the NSE Nifty50 declined 207.95 points or 0.86 per cent to close at 23,842.65.