Karachi: Pakistan’s stock market opened the week on a strong note, with the benchmark KSE-100 Index soaring by more than 4,300 points in early trading on Monday, as investors reacted positively to reports of a peace agreement between the United States and Iran.
By 9:35am, the KSE-100 Index had climbed to 176,767.01 points, registering a gain of 4,367.11 points, or 2.53 percent, reflecting renewed investor confidence and improving market sentiment.
The rally was broad-based, with buying activity witnessed across key sectors including commercial banks, fertiliser, cement, oil and gas exploration companies, oil marketing firms, and refineries. Major index-heavy stocks such as DG Khan Cement, Lucky Cement, HBL, MCB Bank, Meezan Bank, Mari Energies, OGDC, PPL, POL, and Hubco all traded in positive territory.
The bullish momentum followed a relatively resilient performance last week, when the KSE-100 Index managed to post a weekly gain of 1,921 points, or 1.13 percent, closing at 172,399.90 points despite experiencing significant volatility and briefly falling below the 170,000-point level. Analysts had linked that recovery to easing geopolitical tensions and a decline in international oil prices, both of which helped improve investors’ appetite for risk.
Global markets also responded positively to the reported diplomatic breakthrough. Asian equities advanced on Monday, while the US dollar weakened and oil prices declined amid expectations that reduced tensions between Washington and Tehran could ease pressure on the global economy and curb inflationary risks.
Prime Minister Shehbaz Sharif, in an early morning social media post, stated that an agreement had been reached between the two countries. Meanwhile, US President Donald Trump said the reported deal included the reopening of the strategically significant Strait of Hormuz, although he did not disclose further details.
Trump is also expected to hold meetings with Middle Eastern leaders and participate in a working session with Ukrainian President Volodymyr Zelenskiy during this week’s G7 summit in France.
Iran, for its part, indicated that maritime traffic through the Strait of Hormuz would be jointly regulated by Tehran and Oman, prompting discussions over future shipping arrangements along one of the world’s most important energy transit routes.
The reported easing of tensions was viewed as a welcome development for central banks scheduled to meet later this week, as softer oil prices could help contain inflationary pressures driven by energy costs.
In commodity markets, Brent crude futures fell 4 percent to $83.80 per barrel, retreating further from their May peak of $126.41 per barrel. Similarly, US crude declined 4.7 percent to $80.89 per barrel, although prices remained above the levels recorded before the conflict began.
The sharp rebound in Pakistan’s equity market highlights the sensitivity of investor sentiment to global geopolitical developments and reflects optimism that improved stability could support both domestic and international economic conditions.
