The Pakistan Stock Exchange witnessed a strong rebound on Monday, with equities rising sharply as easing oil prices and renewed optimism over a potential Middle East deal boosted investor confidence.
The benchmark KSE-100 Index climbed significantly during intraday trading, reaching a high of 167,245.54 points, up 2.61%, while the session low still reflected a solid gain of over 1% compared to the previous close of 162,994.17.
Market analysts attributed the recovery to improving sentiment driven by geopolitical developments. Expectations of a possible agreement involving United States and Iran have helped calm global markets, while a slight decline in oil prices has eased pressure on energy-importing economies like Pakistan.
According to the CEO of Ismail Iqbal Securities, investors are regaining confidence and shifting focus toward fundamentally strong stocks offering attractive dividend yields. The renewed risk appetite has encouraged buying activity, particularly after last week’s sharp correction in the market.
Oil prices softened after US President Donald Trump announced plans to assist ships stranded in the Strait of Hormuz, a key global energy route. However, prices remained above $100 per barrel due to ongoing uncertainty and the absence of a final agreement between Washington and Tehran.
Negotiations between the two sides are still underway, with Iran reportedly reviewing a US response to its proposed framework for resolving the conflict. Despite progress, both countries continue to differ on key issues, including nuclear talks and maritime restrictions.
The positive momentum in the PSX comes after a difficult previous week, during which the KSE-100 Index lost over 7,600 points, reflecting broader market anxiety linked to geopolitical tensions and rising oil prices.
Monday’s recovery suggests that investors are cautiously optimistic, with hopes that diplomatic efforts will stabilise the region and reduce economic uncertainty. Analysts say sustained gains will depend on further clarity regarding the Middle East situation and global energy trends.
