The equity market rose on Tuesday as easing global oil prices and hopes of renewed US-Iran mediation lifted sentiment.
The Pakistan Stock Exchange’s benchmark KSE-100 Index touched an intraday high of 178,370.45, up 2,442.72 points, or 1.39%, from the previous close. It also hit a low of 176,930.74, still higher by 1,003.01 points, or 0.57%.
“The market has become highly dependent on newsflow stemming from the US and Iran conflict,” Ahfaz Mustafa, CEO of Ismail Iqbal Securities, told Geo.tv.
“Any newsflow that affects oil on the downside is taken positively; currently the rumour of restarting negotiations, and the visit of the Iranian interior minister to Pakistan signals that there is progress towards conflict resolution. This is taken positively by the markets. Result season is also keeping interest heightened,” he said.
Oil prices softened on Tuesday as markets weighed reports of mediation efforts between the US and Iran against fresh attacks between the two sides and threats of a naval blockade of Saudi Arabia by Yemen’s Houthis.
Brent crude futures eased 78 cents, or 0.9%, to $88.44 per barrel by 0415 GMT. US West Texas Intermediate crude was down 73 cents, or 0.9%, at $82.50 per barrel, while the more active September contract slipped 41 cents, or 0.5%, to $82.07 a barrel.
There was “some hope of de-escalation” between the US and Iran, with reports suggesting mediators had proposed a 10-day ceasefire that could put the June interim memorandum of understanding back on track.
However, they cautioned that a settlement would not be easy as major differences remained between Washington and Tehran, while US President Donald Trump had warned of retaliation after several US troops were killed.
A senior Iranian official told Reuters that Tehran had received a proposal from mediators for a 10-day ceasefire in efforts to salvage the deal signed on June 17. The agreement was intended to pave the way for a lasting settlement to end the war that began on February 28 with US-Israeli attacks on Iran.
The diplomatic push followed another night of US strikes on Iranian cities and attacks by Iran’s Revolutionary Guards on US military assets across the region. US Central Command later said it had begun another round of strikes on Iran.
Energy supply concerns also remained in focus after a tanker in the Strait of Hormuz reported being struck by an unknown projectile, forcing its crew to abandon ship, according to the United Kingdom Maritime Trade Operations agency.
Yemen’s Iran-aligned Houthis also said on Monday they would impose a naval blockade on Saudi Arabia, opening a potential new front against the US in its war on Iran and raising concerns over global energy supplies and trade.
On the domestic front, investors also tracked Pakistan’s economic diplomacy after Islamabad and Ottawa agreed to expand cooperation in trade, investment, agriculture, mining, renewable energy, security and development during Canadian Foreign Minister Anita Anand’s visit to Pakistan.
The visit, the first by a Canadian foreign minister to Pakistan in two decades, included progress on an investment protection agreement and the signing of a protocol governing the import of Canadian canola into Pakistan.
The KSE-100 Index had closed marginally higher on Monday, gaining 124.95 points, or 0.07%, to settle at 175,927.74 after a volatile session.
2026-07-21 10:05:00
