The KSE‑100 fell more than 300 points after an initial gain of over 1,500 points, with analysts noting that developments in US‑Iran relations will continue to influence near‑term market sentiment.
The Pakistan Stock Exchange opened the week positively on Monday as progress in US‑Iran peace talks lowered oil prices and boosted investor sentiment, though the market later trimmed its early gains during intraday trading.
The PSX website reported that the benchmark KSE‑100 index rose more than 1,500 points, reaching 180,507.82 in the early minutes of trading. However, the market later pared those gains and briefly slipped into negative territory.
By 2:00 pm, the KSE‑100 was trading at 178,578.26, up 344.49 points (0.19%) from the previous close.
The first round of talks between senior U.S. and Iranian officials in Switzerland concluded on Monday, according to mediators, after a tense opening that included Tehran’s announcement of re‑closing the Strait of Hormuz and U.S. President Donald Trump reiterating his threats to resume attacks on Iran.
A joint statement from mediating nations Qatar and Pakistan said the United States and Iran have agreed to a roadmap for a final deal within 60 days, with technical talks to continue for the remainder of the week at the Qatari‑owned Swiss mountain resort of Buergenstock, as released by the Qatari foreign ministry.
The PSX also recorded a strong rally the previous week, driven by easing Middle‑East geopolitical tensions and investor‑friendly fiscal measures announced in the FY27 budget.
The benchmark KSE‑100 index rose 6,522.84 points (3.8%) week‑on‑week, closing at 178,922.75 points compared with 172,399.91 points a week earlier.
Separate notes from AKD Research and Arif Habib Limited indicated that the KSE‑100 is expected to stay supported in the near term by compliance with the US‑Iran peace deal, progress in technical talks, and favorable corporate results slated for June 2026.
However, brokerage houses warned that geopolitical developments between the United States and Iran are likely to keep trading cautious.
Globally, Asian share markets rose on Monday as Iranian negotiators said progress had been made in peace talks with the United States, helping to calm fears that the process was breaking down.
Officials from Qatar and Pakistan also released a statement saying the first round of talks concluded and progress was made on a roadmap to reach a final deal within 60 days.
Japan’s Nikkei rose 1.8%, having climbed nearly 8% the previous week to all‑time highs. South Korea’s market added 0.6% after surging more than 11% the prior week on strong demand for semiconductor stocks.
MSCI’s broadest Asia‑Pacific index (excluding Japan) gained 0.8%, while Chinese blue‑chip stocks rose 1.6%.
S&P 500 futures trimmed early losses, ending 0.3% lower, while Nasdaq futures slipped 0.2%. In Europe, Eurostoxx 50 futures eased 0.2%, DAX futures fell 0.1%, and FTSE futures were largely unchanged.
Oil prices also fell on Monday after U.S.–Iran talks concluded in Switzerland, with Tehran saying it had secured waivers for oil and petrochemical exports, easing concerns about a global supply shortage.
Brent crude fell $1.68 (2.09%) to $78.89 per barrel by 06:33 GMT. U.S. West Texas Intermediate crude futures were at $76 a barrel, down 60 cents, ahead of the contract’s expiry later Monday. The more active August contract fell 69 cents to $75.16 per barrel.
