KARACHI: Pakistan’s stock market surged on Monday, with the benchmark KSE-100 Index gaining more than 4,500 points intraday, as investor sentiment strengthened following a US-Iran peace breakthrough, falling global oil prices and positive assessments of the federal budget.
The KSE-100 Index climbed to an intraday high of 176,917.76 points, up 4,517.86 points, or 2.62%, from the previous close of 172,399.90. The rally was driven by broad-based buying across major sectors, particularly construction, banking and energy stocks.
Market participants cited easing geopolitical tensions after the United States and Iran agreed on a framework to end hostilities and reopen the Strait of Hormuz. The agreement, facilitated by Pakistan, is expected to be formally signed in Switzerland later this week.
The diplomatic breakthrough triggered a sharp decline in global oil prices, reducing concerns over inflationary pressures and diminishing expectations of further interest rate hikes. International crude prices fell by up to 5% during trading, providing additional support to equity markets worldwide.
Domestically, investors responded positively to the federal budget for FY2026-27, which targets 4% economic growth and includes tax relief measures for businesses. Analysts highlighted reductions in Super Tax rates, incentives for exporters, support for the cement sector and relief for refineries as key market-friendly measures.
The rally comes ahead of the State Bank of Pakistan’s Monetary Policy Committee meeting, where investors expect interest rates to remain stable following easing inflation concerns.
The KSE-100 Index had already posted strong gains on Friday, rising 2,696 points, while the benchmark advanced more than 1,900 points over the previous week.