Pakistan’s stock market opened the week on a strong note, with investors rushing to buy shares after signs of easing tensions between the US and Iran lifted global sentiment.
The benchmark KSE-100 Index surged by more than 3,600 points within minutes of the opening bell on Monday, reflecting a sharp improvement in investor mood. By 9:34am, the index had climbed to 171,456.12, marking a gain of 3,611.88 points or 2.15 percent.
The rally was broad-based, with buying seen across major sectors. Automobile assemblers, cement makers, commercial banks, fertiliser companies, and oil and gas firms all moved higher. Heavyweight stocks such as HBL, MCB, MEBL, MARI, OGDC, PPL, POL and HUBCO remained firmly in positive territory during early trade.
Market activity stayed strong later in the session, although some gains were trimmed. By 12:39pm on May 25, the KSE-100 was at 170,242.79, still higher by 2,398.55 points or 1.43 percent. During the day, the index moved between a low of 170,218.66 and a high of 171,519.26, with traded volumes crossing 121 million shares.
Global cues lift sentiment
The sharp rise in local equities followed encouraging signals from international markets, where investors reacted positively to reports that the US and Iran were moving closer to a deal that could ease tensions in the Middle East.
Shipping activity also added to the optimism. Reports indicated that two liquefied natural gas tankers had started moving through the Strait of Hormuz towards Pakistan and China. A supertanker carrying Iraqi crude also departed the Gulf after being stuck for nearly three months, suggesting that supply routes may gradually reopen.
Global markets reflected similar sentiment. Equity futures in the US moved higher, while oil prices and the dollar weakened. Asian markets also advanced, with Japan’s Nikkei posting strong gains and broader regional indices trending upward.
The conflict in the Middle East has disrupted energy supplies in recent months, pushing oil prices higher and raising concerns about inflation worldwide. The Strait of Hormuz, a key route for global energy shipments, had remained largely blocked during the tensions, adding to uncertainty.
Despite the positive momentum, some caution remains. US President Donald Trump signalled that while progress had been made in talks with Iran, a final agreement may still take time, as Washington was not rushing into a deal.
Previous week’s performance
The latest rally builds on gains from the previous week, when the PSX had already shown signs of recovery. The KSE-100 Index closed at 167,844.25 points last week, posting a rise of 2,248.19 points compared to the week before.
Analysts said improving global cues helped offset ongoing economic concerns at home, allowing the market to maintain an upward trend.
For now, investors appear focused on developments in the Middle East, with any clear progress towards reopening key energy routes likely to keep sentiment positive in the near term.
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