Pakistan’s stock market pared strong early gains on Monday as investors adopted a cautious stance despite optimism surrounding ongoing US-Iran peace negotiations and easing global oil prices.
The benchmark KSE-100 Index opened the week on a positive note, surging more than 1,500 points during early trading to reach an intraday high of 180,507.82. However, the momentum weakened later in the session as traders booked profits and reassessed geopolitical developments.
By 2:00 PM, the KSE-100 Index was trading at 178,578.26 points, reflecting a gain of 344.49 points, or 0.19%, compared to the previous close.
Market sentiment was initially boosted by reports of progress in peace talks between the United States and Iran held in Switzerland. Mediators from Qatar and Pakistan announced that both sides had agreed on a roadmap aimed at reaching a final agreement within 60 days, with technical discussions set to continue throughout the week.
The diplomatic progress helped calm concerns over potential disruptions to global energy supplies and contributed to a decline in international oil prices. Brent crude fell more than 2% to $78.89 per barrel, while U.S. West Texas Intermediate crude traded near $76 per barrel.
Analysts noted that lower oil prices are generally favorable for Pakistan’s economy, as they help reduce import costs and ease inflationary pressures.
The latest gains follow a strong performance by the Pakistan Stock Exchange last week, when the KSE-100 Index advanced 6,522.84 points, or 3.8%, supported by easing regional tensions and investor-friendly measures announced in the FY2027 federal budget.
Brokerage firms AKD Research and Arif Habib Limited said the market is likely to remain supported by continued progress in US-Iran negotiations, positive corporate earnings, and improving investor confidence. However, they cautioned that geopolitical developments will continue to influence short-term market direction.
Meanwhile, global equity markets also traded higher on signs of diplomatic progress. Japan’s Nikkei rose 1.8%, South Korea’s benchmark index gained 0.6%, and MSCI’s Asia-Pacific index outside Japan climbed 0.8%, reflecting improved risk appetite among investors.
Market participants are expected to closely monitor developments in the ongoing US-Iran discussions, which analysts believe will remain a key driver of sentiment for both regional and global financial markets in the coming weeks.
