The Pakistan Stock Exchange (Pakistan Stock Exchange) recorded a strong rally on Monday as investor confidence improved following expectations of a possible US-Iran peace deal, easing regional tensions and falling global oil prices. The benchmark KSE-100 Index surged past the 171,000 mark, reflecting broad-based buying across key sectors of the economy.
According to market data, the KSE-100 Index jumped as much as 3,675 points during early trading and continued its upward momentum throughout the session. By close, the index settled at 171,725 points after gaining 3,881 points or 2.31 percent from the previous session, showing strong participation from institutional and retail investors.
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Furthermore, heavy buying activity was seen in automobile, cement, chemical, banking, fertiliser, oil exploration and energy-related stocks. Major index-heavy companies including HBL, MCB, MEBL, MARI, OGDC, PPL, POL and HUBCO all traded in positive territory, which further strengthened overall market sentiment and supported the sharp rise in benchmark performance.
In addition, investor confidence improved after reports confirmed that two liquefied natural gas (LNG) tankers were moving through the Strait of Hormuz towards Pakistan and China. Shipping data also indicated that a crude oil supertanker carrying Iraqi oil had resumed movement after remaining stranded for months, easing fears of prolonged supply disruptions in global energy markets.
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Meanwhile, global financial markets also reacted positively as expectations of a potential diplomatic breakthrough reduced geopolitical risk premiums. Oil prices dropped sharply to multi-week lows, while US and European futures rose, supported by optimism that improved stability in the Middle East could strengthen global trade and energy supply flows.
Moreover, Asian markets also posted strong gains, with Japan’s Nikkei index hitting record levels and Taiwan stocks reaching new highs. Analysts noted that global equity markets are increasingly being driven by strong earnings performance and technology sector growth, even as geopolitical uncertainties continue to influence short-term volatility in oil and currency markets.