Pakistan stocks jump sharply after Trump holds off planned attack on Iran

KARACHI: Pakistan stocks rallied on Tuesday after US President Donald Trump said he had temporarily postponed a planned attack on Iran, easing geopolitical risk sentiment in regional markets.

The benchmark Pakistan Stock Exchange (PSX) index jumped more than 2,000 points in early trade, extending gains as investors reacted positively to signs of potential de-escalation in Middle East tensions.

The KSE-100 index was up 2,248 points at 164,053 points during intraday trading.

Market sentiment improved after Trump said the planned strike had been delayed following requests from Saudi Arabia, Qatar and the United Arab Emirates, and amid indications that Tehran had presented a revised proposal aimed at restarting negotiations.

In currency markets, the Pakistani rupee in the interbank market strengthened marginally, with the dollar falling 0.03 rupees to 278.57, compared with the previous close of 278.60.

Analysts said easing concerns over immediate escalation in the Gulf helped support risk appetite, although they cautioned that volatility could persist given the fluid geopolitical situation.

Trump said Iran now had a “very good chance” of reaching a deal with the United States, adding that military action remained an option if talks failed.