Pakistan’s stock market rallies more than 2% amid falling international oil prices and optimism over easing Middle East tensions.

KARACHI: The Pakistan Stock Exchange (PSX) staged a strong rally on Tuesday morning, with the benchmark KSE-100 Index surging more than 3,500 points as investors responded positively to falling international oil prices and hopes of reduced tensions in the Middle East.

The benchmark index climbed 3,500.71 points, or 2.01%, to 177,387.39 against the previous close of 173,886.68.

During the morning session, the index touched an intraday high of 177,551.21 and a low of 176,273.72. Trading volume reached 136.57 million shares, while the traded value stood at approximately Rs12.40 billion.

Market analysts attributed the rally to improving global investor sentiment following comments by US President Donald Trump that military action against Iran was not necessary at this point.

The remarks eased concerns about a prolonged conflict and potential disruptions to oil supplies from the Middle East.

International oil prices extended their losses on Tuesday. Brent crude futures fell 24 cents, or 0.23%, to $92.33 per barrel, while US West Texas Intermediate (WTI) declined 35 cents, or 0.40%, to $86.50 per barrel.

Brent crude had already settled 5.85% lower in the previous session, after touching its lowest level since August 31.

The decline in oil prices provided relief to investors concerned about Pakistan’s energy import bill, inflationary pressures and external account stability.

The strong opening rally reflected renewed buying interest at the stock market, although investors will continue monitoring developments in the Middle East and international commodity prices.