Pakistan Stock Market Rebounds Again On Hopes Of Another Round Of Peace Talks In Islamabad

After trading in deep red on Monday, neighbouring Pakistan’s stock market climbed again on Tuesday on hopes of a second round of talks between the United States and Iran in Islamabad.

The benchmark KSE-100 of the country’s equity markets surged nearly 4,000 points to 164,923 in early trade on Tuesday. This was a gain of over 2.7 percent.

The sharp rebound came as global markets also traded in green but with marginal gains. Dow Futures and S&P Futures were trading in negligibly weaker territories, with declines of 0.05 percent and 0.01 percent, respectively, according to Bloomberg TV, as of 2:00 ET on April 14.

The uptick in the Pakistani stock market was significant as the country is expected to host another round of talks between the US and Iran to broker a peace deal.

The sharp rebound in Pakistani equities follows a steep decline in the previous session, when the KSE-100 index had slumped 6,600.05 points, or 3.95 percent, to close at 160,591.33.

Earlier, peace talks between the United States and Iran had failed in Pakistan’s Islamabad, with both sides blaming each other for raising unreasonable demands in a show of distrust.

This led to a blockade of the Strait of Hormuz by the US in retaliation. However, Trump has said that he was in contact with Iranian officials and they “want to work a deal”.

Vice President JD Vance also said the US would be happy to treat heavily sanctioned Iran “like a normal country” if it does not pursue nuclear weapons.

Also, Israel and Lebanon are going to hold talks in Washington today, a first in decades as the two countries do not have diplomatic relations with each other.

Apart from hopes of easing the energy crisis in the country, Pakistani indices rallied on expectations of playing a key role in bringing the warring sides to the negotiation table.