The Pakistan Stock Exchange (PSX) extended its rally on Monday, with the benchmark KSE-100 Index gaining more than 2,000 points during intraday trading as lower global oil prices, easing inflation, and reduced geopolitical tensions in the Middle East lifted investor sentiment.
According to the PSX, the market opened on a strong note, with the KSE-100 Index climbing to an intraday high of 178,985.94, up more than 2,800 points in early trading. By 3:02 PM, the benchmark index was trading at 177,868.00, showing a gain of 1,773.89 points, or 1.01%, from the previous close.
Buying activity remained broad-based, with investors accumulating shares of commercial banks, cement companies, oil and gas exploration firms, oil marketing companies (OMCs), and power generation stocks.
Investor confidence improved after US President Donald Trump delayed a fresh military strike on Iran, easing concerns over further escalation in the Middle East. The development also raised hopes of uninterrupted energy supplies through the Strait of Hormuz, pushing international oil prices sharply lower.
Brent crude fell 4.7% to $83.92 per barrel, while US West Texas Intermediate (WTI) crude declined 5.6% to $79.89 per barrel. Lower oil prices are expected to reduce Pakistan’s import bill and ease pressure on inflation and the current account.
The rally was further supported by the latest inflation data released by the Pakistan Bureau of Statistics (PBS), which showed that Consumer Price Index (CPI) inflation slowed to 9.2% year-on-year in July 2026, down from 11.1% in June. On a month-on-month basis, inflation increased 1.19%, reversing the 0.3% decline recorded in the previous month.
The gains extended last week’s recovery, when the KSE-100 Index added 5,072.93 points, or around 3%, ending a three-week losing streak as improving global sentiment encouraged investors to return to the market.
Across Asia, markets delivered a mixed performance. Japan’s Nikkei 225 and South Korea’s Kospi ended lower, while Hong Kong’s Hang Seng, Australia’s S&P/ASX 200, and India’s Sensex posted gains.
