Broad-Based Rally Lifts Key Sectors in Early Trading Session
KARACHI: The Pakistan Stock Exchange (PSX) witnessed a powerful rally on Monday, with investors rushing to buy shares after reports of a peace agreement between the United States and Iran boosted confidence in global and regional markets.
During the opening minutes of trading, the benchmark KSE-100 Index surged nearly 4,400 points. By 9:35am, the index stood at 176,767.01, reflecting a gain of 4,367.11 points, or 2.53 percent.
The rally extended across major sectors, including commercial banks, fertilizer manufacturers, cement companies, oil and gas exploration firms, oil marketing companies, and refineries.
Several index-heavy stocks traded firmly in positive territory, including DG Khan Cement, Lucky Cement, Habib Bank, MCB Bank, Meezan Bank, Mari Energies, OGDC, Pakistan Petroleum Limited, Pakistan Oilfields, and Hub Power Company.
Improved Sentiment Drives Market Momentum
Market participants attributed the sharp rise to easing geopolitical tensions following announcements regarding a potential peace understanding between Washington and Tehran.
The benchmark index had already posted gains during the previous week despite periods of volatility. It advanced 1,921 points, or 1.13 percent, on a week-on-week basis to close at 172,399.90 points.
Analysts said reduced regional uncertainty encouraged investors to increase exposure to equities, particularly in sectors linked to economic growth and energy stability.
Global Markets React to Diplomatic Progress
Meanwhile, international markets also responded positively to the developments. Asian stock markets recorded strong gains, while the US dollar weakened against major currencies.
Oil prices declined sharply as traders anticipated reduced supply risks in the Gulf region. Brent crude fell 4 percent to $83.80 per barrel, while US crude dropped 4.7 percent to $80.89 per barrel.
Additionally, expectations of lower energy prices eased concerns about global inflation, reducing pressure on central banks that are scheduled to hold key policy meetings this week.
Investors now await further details regarding the reported agreement and its potential impact on regional stability, global trade routes, and future economic growth prospects.
