PSX rebounds as oil eases on US-Iran diplomacy hopes

The equity market rebounded on Tuesday as easing global oil prices and renewed hopes of US-Iran diplomacy improved investor sentiment after the previous session's sharp selloff.

During the session, the Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index climbed to an intraday high of 164,309.64, gaining 2,504.62 points, or 1.55%, before retreating to a low of 163,033.71, reflecting a gain of 1,228.69 points, or 0.76%, from the previous close of 161,805.02.

"Global oil prices are down, Trump has posted on social media delaying military strikes, Saudi and Iran FM have spoken," said AAH Soomro, an independent investment and economic analyst.

"There seem to be extra efforts to mediate and resolve the conflict via dialogue," he added.

Asian markets were mixed on Tuesday as oil prices eased on hopes of a US-Iran deal, though elevated crude levels continued to cap investor appetite for risk.

Energy markets remained in focus after US President Donald Trump signalled "serious negotiations" with Tehran and called off planned strikes, raising optimism that tensions could ease.

The war launched by the United States and Israel on February 28 has led to an effective blockade of the Strait of Hormuz, through which around 20% of global oil exports passed in peacetime.

The leaders of Qatar, Saudi Arabia and the United Arab Emirates asked him "to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place", Trump wrote on Truth Social.

However, Trump added that he had instructed the US military to remain "prepared to go forward with a full, large scale assault of Iran, on a moment's notice, in the event that an acceptable Deal is not reached".

Speaking later at a White House event, Trump said there had been a "very positive development" and that Arab allies had indicated a deal was near that would leave Iran without nuclear weapons, which Tehran denies pursuing.

"There seems to be a very good chance that they can work something out. If we can do that without bombing the hell out of them, I'd be very happy," Trump said.

International benchmark Brent hovered around $109, while West Texas Intermediate stood at $107.

In regional markets, MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.22%, while Japan's Nikkei rose 1%. South Korea's Kospi fell 2%.

Nasdaq futures reversed early gains to trade 0.07% lower, while S&P 500 futures lost 0.03%. In Europe, EUROSTOXX 50 futures rose 0.4%, while FTSE and DAX futures edged 0.3% and 0.4% higher, respectively.

In the previous session on Monday, the KSE-100 Index tumbled 3,791.05 points, or 2.29%, to close at 161,805.02 against the previous session's close of 165,596.07, as selling pressure swept across the board amid cautious sentiment.