KARACHI: Pakistan’s stock market posted strong gains on Monday, buoyed by a sharp decline in global oil prices and growing optimism after US President Donald Trump signalled a pause in military action against Iran in favour of renewed negotiations.
The benchmark KSE-100 Index at the Pakistan Stock Exchange ended the session at 178,200.02 points, advancing 2,105.91 points, or 1.2%.
During intraday trading, the index climbed as high as 178,985.94, up 2,891.83 points (1.64%), while its session low of 177,759.88 still reflected a gain of 1,665.77 points (0.95%) over the previous close.
Independent investment and economic analyst AAH Soomro said investor sentiment improved after President Trump announced a delay in potential strikes on Iran and indicated that Israel had agreed to give diplomacy a chance.
“The prospect of negotiations has raised hopes for regional stability, pushing oil prices lower and encouraging buying at the stock market,” he said.
Huzaifa Riaz, Director at Mayari Securities, said the market opened firmly in positive territory as easing geopolitical concerns weighed on crude oil prices.
He added that while international developments are likely to influence the broader market trend, the ongoing corporate earnings season will continue to drive movement in individual stocks.
Global oil markets also came under pressure after Trump announced that talks with Iran were expected to begin on Monday, reviving hopes of a diplomatic breakthrough over the Strait of Hormuz and Tehran’s nuclear programme.
Brent crude fell by more than 4% to $83.88 per barrel, extending losses after Trump said negotiations were moving forward. The US president had earlier stepped back from plans for military action, saying the framework for an agreement was taking shape.
Iran, meanwhile, announced progress in discussions with Oman on a new shipping arrangement through the Strait of Hormuz, a key route at the centre of recent regional tensions.
Oil prices also declined after Saudi Arabia, Russia and five other OPEC+ members agreed to increase output by 188,000 barrels per day from September.
The bullish session followed Friday’s positive close, when the KSE-100 Index gained 546.13 points, or 0.31%.
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