KSE-100 gains over 3% on US–Iran deal hopes

Following massive selling pressure in the previous session, buying interest returned at the Pakistan Stock Exchange (PSX) as the US and Iran remained engaged in talks to reach a ​deal, with the benchmark KSE-100 Index closing with a gain of over 5,000 points or 3% on Tuesday.

The market opened with a sharp upward gap, suggesting buying interest right from the start—likely driven by positive geopolitical triggers.

The index maintained momentum as the session progressed and hit an intra-day high of 165,763.81 during the final hours of trading.

At close, the benchmark index settled at 165,634.84, up by 5,043.51 points or 3.14%.

“After yesterday’s blockade panic, the market is breathing a sigh of relief as global energy pressures ease significantly,” said Behtari Capital on Tuesday.

Topline Securities said the local bourse staged an emphatic rebound on Tuesday, with sentiment turning decisively positive as supportive global cues provided much-needed relief.

“A sharp decline in international crude oil prices, coupled with renewed optimism surrounding the resumption of US–Iran negotiations after earlier inconclusive talks, served as key catalysts in restoring investor confidence,” it said.

On the index front, key heavyweights including UBL, FFC, LUCK, ENGROH, HUBC, and NBP collectively contributed 1,815 points to the benchmark’s advance, highlighting the index-heavy nature of the rally, Topline said.

Negotiating teams from the US and Iran could return to Islamabad later this week, five sources told Reuters on Tuesday, days after the highest-level talks between the two countries in decades ended without a breakthrough.

On Monday, the PSX witnessed a sharp and broad-based decline, reflecting heightened investor anxiety amid escalating geopolitical uncertainty and lack of progress in the US–Iran talks held in Islamabad. The KSE-100 Index plunged by 6,600.05 points or 3.95% to close at 160,591.33 points.

Internationally, Asian stocks advanced while oil prices and the safe-haven dollar fell on Tuesday as the US said it continued to engage with Tehran to make a ​deal even as it blocked Iran’s ports after the collapse of peace talks over the weekend.

Sources told Reuters that both sides have left the door open to dialogue, and a US official said there was forward momentum toward reaching an agreement.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1% in early Asia trade, while Japan’s Nikkei and South Korea’s KOSPI rose more than 2% each.

Nasdaq ​futures advanced 0.13% while S&P 500 futures held steady, following an overnight rally on Wall Street, while EUROSTOXX 50 ​futures gained 0.63% and DAX futures added 0.77%.

US President Donald Trump said on Monday that Iran had “called this morning” ​and “they’d like to work a deal”.

The US military, meanwhile, began a blockade of Iran’s ports in a move aimed at putting pressure on Tehran.

Meanwhile, the Pakistani rupee registered marginal gain, appreciating 0.01% against the US dollar in the inter-bank market on Tuesday. At close, the local currency settled at 278.97, a gain of 0.03, against the greenback.

Volume on the all-share index increased to 824.54 million from 743.23 million recorded in the previous close.

The value of shares rose to Rs36.34 billion from Rs34.28 billion in the previous session.

WorldCall Telecom was the volume leader with 100.19 million shares, followed by B.O.Punjab with 87.03 million shares, and F. Nat.Equities with 62.63 million shares.

Shares of 487 companies were traded on Tuesday, of which 389 registered an increase, 64 recorded a fall, and 34 remained unchanged.