PSX advances as easing Middle East tensions lift investor sentiment

PSX – (Web Desk) – The stock market moved up on Tuesday. Investors felt hopeful as news came that tensions in the Middle East might calm down. This created a positive mood in the market. There were also reports that Pakistan could be helping to bring talks between the United States and Iran, which gave more support.

The KSE-100 Index showed strong movement during the day. It reached a high of 157,442 points, rising over 4,700 points. At its lowest, it was still up by nearly 2,000 points compared to the previous close.

A market expert said the day started on a good note. Investors were feeling confident because of possible peace in the region. News about Pakistan’s role in helping both countries also made people more positive.

At the same time, the US President said he delayed any military action for five days. He mentioned that recent talks were going well and could lead to a full solution in the Middle East.

However, Iran later denied any direct talks with the US. A senior official also said there would be no discussions and that an important sea route would stay closed for now.

Asian equities rose on the headlines as hopes of de-escalation briefly strengthened, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Taipei and Manila higher, though gains pared as trading progressed. Oil prices, after plunging on Monday, edged up again as the outlook remained uncertain.

Analysts said market direction would remain tied to Middle East developments, with investors also watching post-Ramazan participation and upcoming inflation data.

AKD Research said any de-escalation could trigger a sharper rebound as valuations had turned more attractive, with forward price-to-earnings at 6.6 times. Arif Habib Limited Research put the market at a price-to-earnings ratio of 7.5 times and a dividend yield of around 6.8%.