PSX gains 4,300 points amid hopes of US-Iran talks reviving

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.

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