The Pakistan Stock Exchange (PSX) rebounded further on Tuesday as investor sentiment improved amid reports of mediation efforts between the United States and Iran, with the benchmark KSE-100 Index gaining more than 1,000 points in midday trading.

The index rose to an intraday high of 178,370.45 points before easing to 177,023.97 points, up 1,096.24 points or 0.62% from the previous close of 175,927.73.

Earlier in the session, the index had climbed as much as 1,902.30 points, or 1.08%, to 177,830.03 points at 9:39am, reflecting strong buying interest. The market’s low, meanwhile, stood at 176,930.74 points during the session.

Read: Selective buying helps PSX close in green

Buying interest was witnessed across key sectors including automobile assemblers, commercial banks, oil and gas exploration companies, oil marketing companies, cement, and power generation. Trading activity remained robust, with 221.59 million shares changing hands at a traded value of Rs13.63 billion.

The positive momentum comes amid reports of diplomatic efforts aimed at easing tensions between the US and Iran, helping to improve risk appetite and support buying activity at the local bourse. Meanwhile, oil prices also fell, with markets weighing reports of mediation efforts between the US and Iran against an exchange of fresh attacks between the two and threats of a naval blockade of Saudi Arabia by Yemen’s Houthis.

Market momentum is likely to remain positive unless there is any untoward development on the US-Iran front.