Stocks at the bourse rose in early trade on Tuesday, tracking gains across Asian equities as oil prices fell sharply and hopes of renewed US-Iran talks lifted sentiment.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index traded between a high of 164,683.48, up 4,092.15 points or 2.55%, and a low of 163,416.54, up 2,825.21 points or 1.76%, against the previous close of 160,591.33.
“PSX 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,” said Huzaifa Riaz, Director, Mayari Securities (Pvt) Limited.
“Additional support came from reports of a potential Saudi deposit, further boosting investor confidence,” he added.
Oil prices fell sharply as markets bet on a diplomatic opening after signs that the United States and Iran could return to talks. Brent slipped 2.7% to $96.66 a barrel, and US crude fell 3% to $96.13 as traders weighed reports that both sides had kept the door open to dialogue after the weekend’s failed negotiations.
Sources told Reuters that both sides had kept the door open to dialogue, while a US official pointed to forward movement towards a potential agreement. The United States continued to engage Tehran even as its military enforced a blockade of Iranian ports, a move aimed at increasing pressure after the talks failed to produce a deal.
Additional support came from reports that Pakistan is in discussions with over financial assistance to help manage a roughly $3 billion repayment to the United Arab Emirates, according to Bloomberg.
Prime Minister Shehbaz Sharif said Pakistan remained engaged in efforts to resolve pending issues between the United States and Iran, after delegations from Washington and Tehran held more than 20 hours of talks in Islamabad over the weekend without reaching an agreement.
Pakistan has proposed hosting a second round of talks between the United States and Iran in Islamabad in the coming days, before the current ceasefire expires on April 21, the Associated Press reported, citing two Pakistani officials.
The officials, speaking on condition of anonymity, said the proposal would depend on whether the two sides prefer an alternative venue. They added that the earlier negotiations in Islamabad were part of a continuing diplomatic process rather than a one-off engagement.
In the previous session, the KSE-100 fell 6,600.05 points, or 3.95%, to close at 160,591.33 from 167,191.38, after moving between 163,612.12 and 160,158.92.
