Pakistani stocks are staging a sharp rebound at the opening of the week following reports of a pause in the US-Iran conflict. The dramatic market recovery provided immediate relief after days of heavy downward pressure.
During Monday’s session, the Pakistan Stock Exchange (PSX) benchmark KSE-100 Index touched an intraday high of 177,441.52, surging 6,420.32 points or 3.75 percent from its previous close. It registered a session low of 175,153.16, remaining higher by 4,131.96 points.
Analysts noted that the market recovery was largely a reflection of the decrease in oil prices after a pause in US-Iran tit-for-tat strikes.
Global crude benchmarks tumbled after Washington held fire over the weekend following 13 consecutive nights of strikes on Iran. US Ambassador to the United Nations Mike Waltz confirmed that President Donald Trump was giving space to talks, while Tehran announced a halt to retaliatory regional attacks.
Around 0230 GMT, US West Texas Intermediate fell 4.3 percent to $85.45 a barrel and Brent North Sea crude dropped 3.9 percent to $92.97 per barrel.
The easing energy prices reduced immediate inflation fears, supporting broader investor sentiment after the KSE-100 index had fallen 718.25 points to close at 171,021.20 on Friday.
Additional diplomatic momentum emerged as Iranian foreign ministry spokesman Esmaeil Baqaei highlighted discussions with Oman regarding safe shipping mechanisms through the Strait of Hormuz, alongside reports of a Pakistan bound vessel carrying Saudi crude oil passing the Houthi blockade.
