Pakistan stocks started the week on a positive note, with investors continuing to buy shares after reports of progress in talks between the United States and Iran helped improve sentiment across regional markets.
The benchmark KSE-100 Index climbed more than 500 points during early trading on Monday, extending the strong momentum seen last week. By 11:45am, the index was trading at 179,479.13, showing a gain of 556.38 points, or 0.31 percent.
Buying interest was spread across several major sectors, including automobile assemblers, cement, chemicals, commercial banks, oil and gas exploration companies, oil marketing firms and refineries.
Among the major contributors to the rise were DG Khan Cement, MCB Bank, Meezan Bank, National Bank of Pakistan, Mari Energies, Oil and Gas Development Company, Pakistan Petroleum Limited, Pakistan Oilfields and Hub Power, all of which traded in positive territory.
Peace talks support investor confidence
Market sentiment received support from developments in Switzerland, where senior US and Iranian officials held talks aimed at reducing tensions between the two countries.
According to mediators, the first round of discussions ended with both sides agreeing on a roadmap towards a broader agreement within the next 60 days. Technical-level talks are expected to continue throughout the week.
The development helped calm investor concerns about a possible escalation in the Middle East, particularly after recent tensions involving the Strait of Hormuz, a key global oil shipping route.
Strong rally continues
The latest gains follow a powerful rally at the PSX last week, driven by improving geopolitical conditions and investor-friendly measures announced in Pakistan’s FY27 budget.
During the week, the KSE-100 Index surged by 6,522.84 points, or 3.8 percent, to close at 178,922.75 points, compared with 172,399.91 points a week earlier.
The positive mood was also visible across Asian markets on Monday. Japan’s Nikkei index rose 1.9 percent, while South Korea’s market gained 2.6 percent after a strong performance last week. The broader Asia-Pacific index outside Japan advanced 1 percent.
Oil prices also reflected easing market concerns. Brent crude slipped 0.4 percent to $80.17 per barrel after giving up earlier gains, while US crude traded at $77.52 per barrel.
Analysts said signs of progress in diplomatic efforts, combined with improving local economic sentiment, helped keep investors focused on equities, allowing the PSX to build on last week’s strong performance.
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