Positive momentum at PSX, KSE-100 up nearly 1,100 points amid Iran-US interim peace deal

Buying momentum continued at the Pakistan Stock Exchange (PSX) after the ‌US and Iran signed an interim peace deal, with the benchmark KSE-100 Index gaining nearly 1,100 points during the opening minutes of trading on Thursday.

At 9:30am, the benchmark index was hovering at 181,594.40, up by 1,083.38 points or 0.6%.

Buying was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including HUBCO, PRL, MARI, OGDC, PSO, MCB, MEBL and NBP, traded in the green.

The signing of the US-Iran memorandum of understanding to end the Middle East war means Tehran will reopen the Strait of Hormuz “instantly” and the American blockade of Iranian ports will end “immediately”, Pakistan’s Prime Minister Shehbaz Sharif said on Thursday.

The memorandum “shall enter into force with immediate effect and as a first step, Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade”, Shehbaz wrote on X.

On Wednesday, PSX ended the session on a marginally positive note as profit-taking after the previous two days’ strong rally restricted gains, although easing concerns over global oil prices and improving geopolitical stability continued to support investor sentiment.

The benchmark KSE-100 Index added 118.04 points, or 0.07%, to close at 180,511.02 points.

Globally, Asian stocks were steady and oil prices dipped on ​Thursday as investors assessed progress toward ending the war in the Middle East after the presidents of the ‌U.S. and Iran signed an interim peace deal, though uncertainties still hovered.

Both countries released the text of the agreement, which had already circulated widely before its contents were published. It extends a ceasefire announced in April by another 60 days to allow the two sides to negotiate a final ​truce.

US President Donald Trump, however, threatened to resume attacks and kill Iranian officials if they failed to honour their ​commitments.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat. Japan’s Nikkei share ​average rallied to another record high, surging past the 71,000 level for the first time, on solid gains in semiconductor and AI-related shares, ​while South Korean shares gained 0.9%. U.S. stock futures, the S&P 500 e-minis, were up 0.81% at 7,484.8.

The benchmark 10-year Japanese government bond yield rose 2 basis points to 2.620%, poised for its highest close since June 16, after earlier touching 2.63%.

Oil prices fell, with U.S. crude dipping 1.25% ​to $75.83 a barrel and Brent crude down 1.4% to $78.41 per barrel.

This is an intraday update