Pakistan’s stock market witnessed a strong rally as PSX rises on US-Iran tensions becoming the key market theme on Monday. Investor confidence improved after signs of de-escalation between the United States and Iran reduced fears of a wider regional conflict, pushing the benchmark KSE-100 Index sharply higher.
The KSE-100 Index climbed more than 5,300 points during intraday trading. By around 12:14pm, the benchmark had gained 5,370.70 points, or 3.14%, to reach 176,391.90. It later traded at 176,354.07, remaining significantly above the previous session’s close of 171,021.20.
Market analysts attributed the rally to improving global sentiment after reports indicated a temporary pause in hostilities between the United States and Iran. Investors viewed the development as a positive sign that the conflict may not escalate further, encouraging fresh buying across the market.
The easing geopolitical tensions also pushed international oil prices lower. Brent crude dropped 4.2% to $92.74 per barrel during early Asian trading, offering potential relief for oil-importing economies such as Pakistan by reducing pressure on energy import costs.
Strong buying interest was recorded across major sectors, including automobile assemblers, commercial banks, cement manufacturers, oil and gas exploration companies, oil marketing firms, and power generation companies. The broad-based gains reflected renewed investor optimism after recent market volatility.
The rally also followed a weak previous trading session, with investors returning to equities as concerns over regional instability eased. Analysts noted that improving global risk appetite helped restore confidence in Pakistan’s capital market.
Trading activity remained robust throughout the session. More than 195 million shares changed hands, while the total traded value reached approximately Rs12.61 billion, highlighting strong investor participation as the market staged one of its biggest single-day recoveries in recent weeks.
