The Pakistan Stock Exchange’s (PSX) benchmark index gained nearly 1,200 points during intraday trade on Tuesday.

The KSE-100 index opened in the green, soaring by 2,442.72 points to reach an intraday high of 178,370.45 at 10:09am.

However, it then dipped sharply after 12pm, declining to 177,120.04 points at 12:44pm, up by 1,192.31 (0.68 per cent) from the previous close.

The development came as global oil prices softened on Tuesday, with markets weighing reports of mediation efforts between the US and Iran against an exchange of fresh attacks between the two and threats of a naval blockade of Saudi Arabia by Yemen’s Houthis.

Brent crude futures eased 78 cents, or 0.9pc, to $88.44 per barrel by 0415 GMT. US West Texas Intermediate crude was down 73 cents, or 0.9pc, to $82.50 per barrel, while the more active contract for September delivery slipped 41 cents, or 0.5pc, to $82.07 a barrel.

Awais Ashraf, director of research at AKD Securities, said the market extended the previous session’s late recovery as “oil prices retreated from a one-month high amid renewed mediation efforts between the US and Iran”.

“Investor sentiment is also being supported by optimism surrounding the ongoing earnings season, with oil and gas exploration, cement, refinery and textile companies expected to post stronger-than-usual results,” he said.

The stock exchange had opened the week on Monday on a depressed note, with the market remaining under extreme volatility. However, late value-hunting allowed the benchmark KSE-100 index to close the session in the green with a meagre gain.

Topline Securities Ltd said the index closed marginally higher, gaining 124.95 points or 0.07pc to settle at 175,927.74, as strong late-session buying in heavyweight banking and refinery stocks erased sharp intraday losses. The market remained highly volatile throughout the session, reflecting cautious investor sentiment amid lingering geopolitical tensions and uncertainty in global energy markets.

Additional input from Reuters