KARACHI: After overnight mayhem, the Pakistan Stock Exchange (PSX) staged a spectacular recovery on Tuesday, thanks to renewed hopes for the resumption of peace talks between the United States and Iran, which eased fears of oil supply disruptions and brought down oil prices.

Topline Securities Ltd said the local bourse staged an emphatic rebound, 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 about the resumption of US-Iran negotiations after earlier inconclusive talks in Islamabad, served as key catalysts for restoring investor confidence.

The benchmark index witnessed broad-based buying interest, surging to an intraday high of 5,172 points before settling at 165,634.84, recording a robust gain of 5,043.51 points, or 3.14 per cent. The rally was further supported by fresh institutional flows and short covering, which amplified the upward momentum.

On the index front, key heavyweights including United Bank, Fauji Fertiliser, Lucky Cement, Engro Holdings, Hub Power, and National Bank, collectively contributed 1,815 points to the benchmark’s advance, highlighting the index-heavy nature of the rally.

Oil price drop triggers institutional buying

Market activity remained vibrant, with total volume rising 10.94pc to 824.53 million shares and traded value increasing 5.98pc to Rs36.33 billion, reflecting improved participation. WorldCall Telecom led the volume chart, with 100 million shares traded.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said PSX closed on a strong note, with optimism over potential peace talks reviving hopes of de-escalation and marking a sharp rebound from the overnight sell-off triggered by failed talks and rising oil prices.

On the diplomatic front, Mohammed bin Salman extended financial support of $3bn to Pakistan, providing a timely boost to sentiment and strengthening bilateral ties.

While market chatter about a potential second round of US-Iran talks in Islamabad continues to circulate, official clarity remains elusive. However, ongoing diplomatic efforts and indications of possible follow-up negotiations are likely to keep sentiment supported and momentum elevated in the near term.

Published in Dawn, April 15th, 2026