The Pakistan Stock Exchange witnessed strong buying pressure on Monday, with the benchmark KSE-100 Index surging more than 3,700 points during intraday trade as investors welcomed reports of a peace agreement between the United States and Iran.
The market opened on a bullish note and extended gains throughout the session, reflecting renewed investor confidence amid hopes that easing geopolitical tensions could support global economic stability.
By around 1:09pm, the KSE-100 Index had climbed 3,754.51 points, or 2.18 percent, to 176,154.41 points, compared with the previous close of 172,399.90. Earlier in the day, the benchmark touched an intraday high of 176,917.76 points after opening with a sharp jump of more than 4,500 points. The day’s low stood at 175,085.79 points.
Trading activity remained robust, with nearly 299.4 million shares changing hands during the session. The benchmark index has gained 44.22 percent over the past year, while its year-to-date return stood at 1.21 percent.
The rally was broad-based, with investors accumulating stocks across major sectors, including commercial banks, fertiliser, cement, oil and gas exploration companies, oil marketing firms and refineries. Heavyweight companies such as DG Khan Cement, Lucky Cement, Habib Bank, MCB Bank, Meezan Bank, Mari Energies, Oil and Gas Development Company, Pakistan Petroleum, Pakistan Oilfields and Hub Power remained among the notable gainers.
Among the most actively traded stocks, Maple Leaf Cement Factory attracted strong interest, rising 7.38 percent to Rs97.20. Pakistan International Bulk Terminal gained 3.14 percent, while Bank of Punjab added 3.06 percent. Pak Elektron advanced 4.58 percent and WorldCall Telecom edged up 2.36 percent. Other actively traded shares, including Kohinoor Spinning Mills, OBOY, Cnergyico and Siddiqsons Tin Plate, also posted gains.
The positive momentum came after reports that Washington and Tehran had reached a peace arrangement, raising expectations that disruptions to global energy supplies could ease. Lower geopolitical risks also fuelled hopes that inflationary pressures may soften, reducing the need for aggressive monetary tightening by central banks.
Prime Minister Shehbaz Sharif said early on Monday that an agreement had been reached, while US President Donald Trump stated that the deal included reopening the strategically important Strait of Hormuz, although further details were not disclosed.
The prospect of reduced tensions weighed heavily on oil prices. Brent crude dropped 4 percent to $83.80 a barrel, while US crude fell 4.7 percent to $80.89 a barrel. Analysts said lower energy prices could provide relief to oil-importing economies such as Pakistan by easing pressure on inflation and the external account.
The latest rally builds on gains recorded last week, when the KSE-100 Index rose 1.13 percent, or 1,921 points, despite bouts of volatility that briefly dragged the market below the 170,000-point mark. Improved sentiment linked to easing Middle East tensions and declining oil prices had already started drawing investors back into equities.
Investor focus has also remained on the federal budget for fiscal year 2026-27, unveiled on Friday by Finance Minister Muhammad Aurangzeb. The government has projected economic growth of 4 percent and inflation of 8.2 percent for the upcoming fiscal year.
Asian share markets also moved higher on Monday, as investors reacted positively to signs of stability in the Middle East. The combination of lower oil prices and reduced geopolitical uncertainty improved risk appetite globally, helping equities extend gains across several markets.
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