Pak's KSE-100 climbs amid optimism about US-Iran talks

Karachi, Apr 21 (PTI) The Pakistan Stock Exchange showed positive sentiments on Tuesday as optimism grew about possible talks between the US and Iran in Islamabad.
     The KSE 100-index gained 2,400 points, pushing the index to 174,000, the best recorded since the Iran and US conflict began late February.
     The market had gained by 1.41 per cent by midday, and buying momentum was high on the floor.
     Financial analyst Awais Ashraf from AKD Securities said that the positive sentiment was based on the optimism of a second round of peace talks between the US and Iran.
     According to US media reports, Vice President J D Vance is likely to travel to Islamabad on Tuesday for peace talks with Iran to end the seven-week war. On the other hand, Iran's Foreign Ministry Spokesperson Esmaeil Baqaei said on Monday that his country has yet to decide whether to attend the next round of talks with the US.
     The positive market sentiment in Pakistan was also based on Saudi Arabia releasing the final tranche of USD 1 billion to the State Bank on Tuesday, completing the transfer of a USD 3 billion aid in a week to help bolster Pakistan’s foreign exchange reserves.
     Ashraf said trading activity remained robust, with volume clocking in at 227,286,926 shares, compared to the previous close of 172,196.70. The overall traded value was recorded at 17,551,737,587.
     He said Pakistan’s improved diplomatic position globally and the issuance of USD 750 million Eurobond had a positive impact on the market.
     In contrast, Pakistan’s fuel prices remain under pressure with the Pakistan State Oil (PSO) having to import petroleum products at high premiums due to disruptions in global supply routes amid the West Asia conflict.
     The crisis has impacted shipments through the Strait of Hormuz, a key oil transit route, pushing premiums from around USD 12 per barrel to over USD 34-35 per barrel, the highest level ever recorded.
     In a letter to the Oil and Gas Regulatory Authority, PSO highlighted that a recent high-speed diesel cargo carried a premium of USD 35.612 per barrel, warning that similar costs are expected for upcoming shipments.

(This story has not been edited by THE WEEK and is auto-generated from PTI)