The Pakistan Stock Exchange’s (PSX) benchmark index on Tuesday made marginal gains as investor sentiment remained cautious over uncertainty surrounding global energy markets.

The KSE-100 index opened in the green, soaring by 2,442.72 points to reach an intraday high of 178,370.45 at 10:09am. However, the market dipped sharply from 12pm onwards, dropping below the 177,000-point level at 1:56pm.

It then finally closed at 176,133.56 points, up by mere 205.83 points (0.12 per cent) from the previous close.

Topline Securities Ltd noted that the “strong start proved short-lived, as participants opted to lock in gains at elevated levels, triggering broad-based profit-taking during the latter half of the session”.

“The subdued close reflected cautious investor sentiment amid lingering geopolitical tensions and persistent uncertainty surrounding global energy markets, prompting market participants to remain selective despite the early optimism,” it added.

Topline further observed that refinery stocks bore the brunt of the selling pressure amid “market speculation that the long-awaited refinery policy could face further delays”.

“Overall, investor sentiment remained guarded as market participants continued to assess geopolitical developments and their potential implications for global oil prices, inflation, and foreign investment flows,” the brokerage house said.

Earlier in the day, KSE-100 had witnessed a strong rally as markets weighed reports of mediation efforts between the US and Iran against an exchange of fresh attacks between the two. As of 1:15pm PKT, global oil prices had fallen by more than 1pc.

However, the majority of the early market gains eroded as oil prices rose by nearly 2pc, following continued hostilities in the Gulf as well as threats of a naval blockade of Saudi Arabia by Yemen’s Houthis.

Brent crude futures rose $1.62, or 1.8pc, to $90.84 a barrel by 4:52pm PKT.

The front-month US West Texas Intermediate crude contract, which expires on Tuesday, was up $1.37, or 1.7pc, at $84.60. The more active contract for September delivery rose $1.48, or 1.8pc, to $83.96.

Awais Ashraf, director of research at AKD Securities, said the market extended the previous session’s late recovery as “oil prices retreated from a one-month high amid renewed mediation efforts between the US and Iran”.

“Investor sentiment is also being supported by optimism surrounding the ongoing earnings season, with oil and gas exploration, cement, refinery and textile companies expected to post stronger-than-usual results,” he said.

The stock exchange had opened the week on Monday on a depressed note, with the market remaining under extreme volatility. However, late value-hunting allowed the benchmark KSE-100 index to close the session in the green with a meagre gain.

Additional input from Reuters