Karachi: The benchmark index of the Pakistan Stock Exchange opened the week with a strong rally on Monday, gaining more than 2,800 points during early trading.
The KSE-100 index jumped by 3,594 points to reach 171,438 points at 9:30am. On Friday, the market had closed at 167,844.24 points.
However, the index slightly trimmed gains by 9:39am. It stood at 170,714 points, still higher by 2,870 points.
Market Gains Linked to US-Iran Deal Expectations
Investor sentiment improved after reports suggested that the United States and Iran were close to announcing an agreement to reopen the Strait of Hormuz.
As a result, concerns about global oil supply disruptions eased. Investors also increased buying activity across major sectors.
Meanwhile, oil prices declined sharply on Monday. North Sea Brent crude dropped nearly five percent to $99.41 per barrel. Similarly, West Texas Intermediate fell to $92.49 per barrel.
PSX Ended Last Week in Green Territory
Last week, the stock market also closed on a positive note despite late-session volatility.
According to Arif Habib Limited, the KSE-100 index gained 2,248 points during the week. The benchmark index rose 1.36 percent week-on-week and settled at 167,844.24 points.
The brokerage house said improving diplomatic signals regarding the Middle East conflict boosted investor confidence.
Furthermore, expectations of progress in US-Iran talks supported the rally. Reports also suggested Pakistan played a role in facilitating backchannel diplomacy.
Analysts noted that easing geopolitical tensions and lower oil prices encouraged value buying in key sectors of the market.
