ISLAMABAD: Bulls staged a modest comeback at the Pakistan Stock Exchange (PSX) on Monday, with financial analysts attributing the positive change to hopes of a de-escalation between the United States (US) and Iran, as well as a slump in global oil prices. 

According to brokerage firm Topline Securities, the benchmark KSE-100 Index opened on a strong note on Monday, extending its early gains to an intraday high of 848 points before profit-taking trimmed the gains.

The stock market closed at 171,153.16 points, data shared by the stock marked showed, gaining by 268.58 points or 0.16 percent when trading ended on Monday.

"The cooling oil prices offered relief to investors, easing concerns over inflationary pressures, the external account and overall macro stability," Topline Securities said in a statement. 

The development follows oil prices sliding to their ​lowest in more than a week on Monday, over hopes that diplomacy will cool down tensions as world leaders gather for the UN General Assembly in New York this week. 

Brent crude futures and US West Texas Intermediate crude touched their lowest since Sept. 10 earlier on Monday, with Brent at $101.71 a barrel by 05:13 a.m. Saudi time, down $2.16, or ​2.08 percent, after settling 0.91 percent lower on Friday.

US West Texas Intermediate crude lost $2.15, or 2.14 percent, to $98.15 a barrel following a 1.58 percent ​drop in the previous session.

Topline noted that trading remained "healthy" at the stock market, with the total volume of shares traded reaching 692 million, while the value of trade stood at around Rs201 billion [$72.6 million].

Pakistan, which imports most of its fuel from the Middle East, as reeled from the effects of the conflict. The US-Iran war has driven up oil prices since the war started in February and disrupted fuel supplies, with global maritime routes Strait of Hormuz and Bab al-Mandab heavily affected by the fighting.