Stocks at PSX surge, KSE-100 up over 500 points after Iran signals talks progress

Buying momentum continued at the Pakistan Stock Exchange (PSX) as Iranian negotiators said progress had been made in peace talks with the United States, with the benchmark KSE-100 Index gaining over 500 points during the opening hours of trading on Monday.

At 11:45am, the benchmark index was hovering at 179,479.13, up by 556.38 points or 0.31%.

Buying was observed in key sectors, including automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies, OMCs and refinery. Index-heavy stocks, DGKC, MCB, MEBL, NBP, MARI, OGDC, PPL, POL and HUBCO, traded in the green.

The first round of talks between high-ranking US and Iranian officials in Switzerland ended Monday, mediators said, after a tense opening marked by Tehran’s announcement it had again closed the Strait of Hormuz and US President Donald Trump repeating his threats to resume attacks on Iran.

A joint statement from mediating nations Qatar and Pakistan said the US and Iran agreed to a roadmap toward a final deal within 60 days. Technical talks will continue for the rest of the week in the Qatari-owned Swiss mountain resort of Buergenstock, according to the statement, which was released by the Qatari foreign ministry.

During the previous week, PSX witnessed a strong bull run during the previous week as easing geopolitical tensions in the Middle East, coupled with investor-friendly fiscal measures announced in the FY27 budget, significantly boosted sentiment and triggered aggressive buying across major sectors.

The benchmark KSE-100 Index surged by 6,522.84 points, or 3.8%, on a week-on-week basis to close at 178,922.75 points, compared with 172,399.91 points a week earlier.

Globally, Asian share markets swung higher ​on Monday as Iranian negotiators said progress had been made in peace talks with the United States, helping calm fears that the process ‌was breaking down.

The news saw Brent crude futures ⁠shed early gains to ease 0.4% to $80.17 a barrel, far away from its May peak of $126.41.

US crude remained 1.2% firmer at $77.52 a barrel.

Japan’s Nikkei ​rose 1.9%, having climbed almost 8% last week to all-time highs. South Korea’s red-hot market added another 2.6%, after surging more than 11% last week ​on demand for semiconductor stocks.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.0%, while Chinese blue chips were flat.

This is an intra-day update