The KSE-100 Index opened the shortened Eid holiday week with a robust rally, climbing 3,900 points, or 2.31%, on Monday as investor sentiment rose amid increasing optimism that the United States and Iran were edging toward a peace agreement.
The market opened with heightened volatility, as early trading saw sharp swings and profit‑taking. Yet buying pressure gradually intensified, enabling the benchmark to rebound from earlier losses and climb steadily throughout the session.
In mid‑session, the index traded within a narrow band around the 170,300‑170,700 zone.
During the latter half of the session, aggressive buying across the board sparked a strong rally, pushing the market to an intra‑day peak of 171,920.80.
At the close, the benchmark settled at 171,725.29, up 3,881.05 points, or 2.31%.
Brokerage firm Topline Securities noted that investor confidence had risen markedly after weekend progress in Iran‑U.S. negotiations, with talks potentially concluding soon. Additionally, a near‑$6 per barrel drop in international oil prices further buoyed sentiment.
The rally was largely propelled by heavyweight stocks — such as Habib Bank Limited, Fauji Fertilizer Company, United Bank Limited, Engro Holdings, and Lucky Cement — which together added 1,315 points to the index and underpinned the upward movement.
Shipping data indicated that two LNG tankers exited the Strait of Hormuz on Monday en route to Pakistan and China, while a supertanker carrying Iraqi crude destined for China departed the Gulf on Saturday after being stranded for nearly three months.
Last week, Pakistan’s equity market recorded modest gains, as improving investor sentiment — driven by prospects of negotiations to de‑escalate regional tensions — supported stocks despite ongoing macro‑economic headwinds. The KSE‑100 closed at 167,844.25 points, up 2,248.19 points week‑on‑week.
Globally, equities rose on Monday as the US dollar and oil prices slipped, buoyed by expectations of a deal to end the Iran conflict, though uncertainty about when the Strait of Hormuz might reopen tempered enthusiasm.
The Pakistani rupee edged higher against the US dollar in inter‑bank trading on Monday, closing at 278.51, up 0.01 rupees.
Trading volume on the all‑share index fell to 506.35 million shares, down from 480.82 million in the previous session.
The total market value of shares increased to Rs31.15 billion, up from Rs22.72 billion a session earlier.
B.O. Punjab led trading volume with 27.29 million shares, followed by F. Nat.Equities (25.57 million) and Pak Int.Bulk (24.88 million).
A total of 489 companies changed hands on Monday, with 345 posting gains, 107 declines, and 37 unchanged.