Bulls roar at PSX, KSE-100 up nearly 4,400 points amid US-Iran peace deal
- Benchmark index was hovering at 176,767.01 this morning
Massive buying was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining nearly 4,400 points during the opening minutes of trading on Monday, as investors rejoiced over the peace deal between the United States and Iran.
At 9:35am, the benchmark index was hovering at 176,767.01, up by 4,367.11 points or 2.53%.
Across-the-board buying was seen in key sectors, including commercial banks, fertiliser, cement, oil and gas exploration companies, OMCs and refinery. Index-heavy stocks, including DGKC, LUCK, HBL, MCB, MEBL, MARI, OGDC, PPL, POL and HUBCO, traded in the green.
During the previous week, the benchmark KSE-100 Index gained 1.1% despite sharp volatility and briefly falling below the key 170,000-point level, as easing tensions between the United States and Iran and declining international oil prices improved investor sentiment and revived risk appetite.
The benchmark KSE-100 Index advanced 1,921 points, or 1.13%, on a week-on-week basis to settle at 172,399.90 points
On Friday, Finance Minister Muhammad Aurangzeb unveiled Pakistan’s federal budget for fiscal year 2026-27, with the government seeking to achieve GDP growth of 4% and inflation at 8.2%.
Share markets surged in Asia on Monday, while the dollar slipped and oil prices tumbled, as a tentative peace deal between the United States and Iran promised to ease inflationary pressures globally and reduce the need for higher interest rates.
Pakistani Prime Minister Shehbaz Sharif said on social media early on Monday that a deal had been struck, while President Donald Trump said the agreement included opening the vital Strait of Hormuz, though without giving details.
Trump will meet with Middle Eastern leaders and attend a working session with Ukrainian President Volodymyr Zelenskiy during a G7 summit in France this week.
Iran said traffic through the strait would be regulated by it and Oman, a potential blow to the rules of free trade and suggesting there might be some sort of toll on shipping.
The news will be a relief for the crowd of central banks meeting this week, easing some of the pressure to tighten policy to head off an energy-driven rise in inflationary expectations.
Markets had already priced in a likely deal, but the confirmation was enough to send Brent crude falling 4% to $83.80 a barrel, well away from its May peak of $126.41. U.S. crude slid 4.7% to $80.89 a barrel, but was still above the $67 level it traded at before the war began.
This is an intraday update