The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index gained over 4,300 points during intraday trade on Wednesday, sustaining its bullish momentum for a second consecutive day.
The positive trend comes amid hopes that peace talks between the United States and Iran will proceed to a second round, with US President Donald Trump saying they are more likely to be held in Islamabad.
The KSE-100 index surged by 4,301.24 points, or 2.60 per cent, to reach 169,936.08 points, from the previous close of 165,634.84 points.
The PSX staged a spectacular recovery on Tuesday, gaining 5,000 points, thanks to renewed hopes for the resumption of US-Iran negotiations, which eased fears of oil supply disruptions and brought down oil prices.
US stocks rose and oil fell again on Wednesday after Trump’s remarks, fuelling hopes for a deal that would reopen the Strait of Hormuz and allow crude to flow again.
Ongoing diplomatic efforts and indications of possible follow-up negotiations are likely to keep sentiment supported and momentum elevated in the near term.
On the diplomatic front, Saudi Arabia has pledged financial support of an additional $3bn to Pakistan and extended its existing $5bn facility for a further three years, providing a timely boost to sentiment.
