Benchmark index jumps 2.83% as easing geopolitical tensions spark broad-based buying at PSX
KARACHI: The Pakistan Stock Exchange (PSX) staged a strong recovery on Monday, with the benchmark KSE-100 Index surging more than 4,800 points, as easing tensions between the United States and Iran boosted investor confidence and triggered broad-based buying across the market.
The benchmark opened sharply higher and remained firmly in positive territory throughout the trading session after reports that Washington and Tehran had halted military strikes against each other over the weekend amid renewed diplomatic efforts.
According to market data, the KSE-100 Index was trading at 175,853.43 points, up 4,832.23 points, or 2.83%, from the previous close of 171,021.20 points.
During the session, the benchmark touched an intraday high of 176,378.01 points and a low of 175,153.16 points, reflecting strong buying interest across major sectors.
Broad-based buying lifts market
Investor sentiment improved significantly following reports that the United States and Iran had paused military action against each other in an effort to revive diplomatic negotiations.
US President Donald Trump was reported to be open to renewed peace talks, while the United States suspended military operations against Iran from late Friday without an official announcement. Tehran also said it had halted retaliatory strikes and entered discussions with Oman regarding maritime security in the Strait of Hormuz.
The easing of tensions encouraged investors to return to equities, with buying witnessed across several heavyweight sectors of the market.
Trading activity remains strong
Market participation remained healthy during the session.
A total of 93.13 million shares changed hands, while the total traded value reached approximately Rs7.66 billion during the reported period.
Geopolitical risks still in focus
Despite the ceasefire, regional risks remained elevated after Iran-backed Houthi forces in Yemen claimed responsibility for attacks targeting facilities linked to Saudi Aramco at the Red Sea ports of Jizan and Yanbu.
Meanwhile, global oil prices have risen nearly 40% this month amid concerns over potential supply disruptions affecting both the Strait of Hormuz and the Red Sea, two of the world’s most important oil shipping routes.
Analysts said the sharp rebound in the KSE-100 Index reflected optimism that easing geopolitical tensions could reduce pressure on global energy markets and improve Pakistan’s economic outlook. However, investors are expected to continue closely monitoring developments in the Middle East, as any renewed escalation could quickly influence market sentiment.