The Pakistan Stock Exchange (PSX) witnessed a powerful rally on Monday as the benchmark KSE-100 Index surged more than 4,500 points during early trading, fueled by growing investor optimism following a reported peace agreement between the United States and Iran.
According to market data, the KSE-100 Index jumped 4,518.76 points shortly after trading began, reaching an intraday high of 176,917.76 points. The index later maintained most of its gains and was trading at 175,550.77 points, up 3,150.87 points, or 1.83 percent, from the previous session’s close.
The rally was supported by broad-based buying across several key sectors, including banking, cement, automobile assemblers, automobile parts, fertilisers, technology and communication, transport, oil and gas exploration companies, oil marketing firms, and refineries.
Investor confidence improved significantly after announcements from Pakistani Prime Minister Shehbaz Sharif and U.S. President Donald Trump indicating that a peace agreement had been reached to end hostilities between the United States and Iran.
The development raised hopes of greater regional stability and reduced geopolitical risks, encouraging investors to increase exposure to equities. Market participants also reacted positively to the sharp decline in international oil prices, which is expected to reduce inflationary pressures and improve Pakistan’s external account outlook.
Brent crude prices fell by more than 4 percent, while U.S. West Texas Intermediate crude declined by over 5 percent, reaching their lowest levels since March. Lower oil prices are generally viewed as beneficial for Pakistan, a major oil-importing nation.
The positive sentiment was not limited to Pakistan. Asian and global equity markets also recorded strong gains following reports of the peace deal. Japan’s stock market climbed nearly 5 percent, while South Korea’s benchmark index advanced more than 5 percent. European and U.S. stock futures also traded higher amid improving global risk appetite.
The latest surge follows a strong performance by the PSX last week when the KSE-100 Index gained 1,921 points, or 1.13 percent, despite periods of volatility. Analysts believe easing geopolitical tensions and declining energy prices could continue to support market momentum in the coming sessions.
