PSX extends gains over 2,400 points as oil slides on US-Iran talk optimism

Buying momentum returned to the Pakistan Stock Exchange (PSX) on Tuesday, as investor sentiment improved amid growing optimism over a potential second round of US-Iran talks aimed at resolving the ongoing conflict. Hopes that diplomacy may progress have weighed on global oil prices, easing supply concerns and providing a supportive backdrop for equity markets.  The benchmark KSE-100 index traded firmly in positive territory during the early session, the index stood at 174,631.25, up 2,434.55 points, or 1.41% at 12:24 pm, at the time of reporting.   The market touched an intraday high of 175,298.11, while the low was recorded at 173,405.57. Trading activity remained robust, with volume clocking in at 227,286,926 shares, compared to the previous close of 172,196.70. The overall traded value was recorded at 17,551,737,587. The rally was broad-based, with strong buying observed in key sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and refineries. On the global front, oil prices moved lower as markets anticipate that renewed US-Iran negotiations could lead to an eventual increase in crude supply, reducing pressure on energy markets.  Read: PSX commences week with 1% slide Overall, the market maintained a firm and positive tone during the first half of trading, with investors focusing on fundamentally strong sectors. Further direction will depend on the continuation of buying momentum and further clarity on global developments. “Investors are waiting for the outcome of the US-Iran talks on reaching a deal during this week in Islamabad,” AKD Securities Director Research Mohammed Awais Ashraf told the Express Tribune.  He said any positive developments are likely to drive market recovery, particularly given the improved diplomatic positioning of Pakistan and a fully funded external position after receiving $3 billion from Saudi Arabia and the issuance of $750 million Eurobond, along with a current account surplus of $1.0 billion in March 2026.  Further, inflation is likely to remain at 9.6% in April 2026 despite a significant increase in fuel prices due to a moderate increase in food prices, which means that the Real Interest rates are still positive, Ashraf predicted.