KSE-100 Index Gains More Than 1,000 Points in Early Trading
KARACHI: The Pakistan Stock Exchange (PSX) extended its bullish momentum on Thursday, with the benchmark KSE-100 Index climbing more than 1,000 points during early trading after the United States and Iran formally signed an interim peace agreement.
By 9:30am, the benchmark index had reached 181,594.40 points, reflecting a gain of 1,083.38 points, or 0.6%, as investors responded positively to improving regional stability and easing concerns over global energy disruptions.
Strong buying activity emerged across several major sectors, including automobile assemblers, cement manufacturers, commercial banks, oil and gas exploration firms, oil marketing companies and power generation stocks. Market-heavy shares such as HUBCO, PRL, MARI, OGDC, PSO, MCB, MEBL and NBP all traded in positive territory.
Investor sentiment strengthened further after Prime Minister Shehbaz Sharif announced that the newly signed memorandum of understanding between Washington and Tehran would trigger the immediate reopening of the Strait of Hormuz and the lifting of the US naval blockade on Iranian ports.
Geopolitical Relief Strengthens Market Outlook
According to the prime minister, the agreement took effect immediately, with both sides committing to initial confidence-building measures aimed at reducing tensions and restoring commercial activity.
The development followed Wednesday’s trading session, when the KSE-100 Index closed slightly higher despite profit-taking after two consecutive days of strong gains. Analysts said improving geopolitical conditions and lower oil price concerns continued to support market confidence.
Global Markets Remain Focused on Peace Process
Meanwhile, Asian markets traded cautiously as investors assessed the broader implications of the US-Iran agreement. Japan’s Nikkei Index advanced to a new record high, driven by strong technology and semiconductor shares, while South Korean equities also posted gains.
Oil prices moved lower as traders anticipated smoother energy flows through regional shipping routes. Brent crude slipped to $78.41 per barrel, while US crude fell to $75.83.
Analysts said continued progress in regional diplomacy could provide further support to investor sentiment in both local and international markets.
