The Pakistan Stock Exchange’s (PSX) benchmark index began the week on a strong note on Monday, gaining 2,800 points during early trading.

The KSE-100 index had gained 3,594 points and was at 171,438 points at 9:30am, compared to Friday’s close of 167,844.24 points. By 9:39am, the index had slightly dipped to 170,714 points, up by 2,870 points.

The development comes amid hopes that a deal between the United States and Iran to open the Strait of Hormuz could be announced soon.

Oil prices also fell on Monday. The price of North Sea Brent crude and West Texas Intermediate slipped close to five percent to $99.41 and $92.49 a barrel, respectively.

Despite last-minute jitters, the stock market had closed last week in green territory amid improving diplomatic signals surrounding the Middle East conflict, which lifted investor sentiment and encouraged value-hunting across key sectors, pushing the benchmark KSE-100 index above the 167,000-point level.

According to Arif Habib Ltd, the KSE-100 index gained 2,248 points, or 1.36 per cent week-on-week, to settle at 167,844.24 points. The rally was largely driven by expectations of progress in US-Iran talks, with Pakistan reportedly playing a role in facilitating backchannel diplomacy. The development eased concerns over possible oil supply disruptions and supported equity market performance.

Additional input from AFP