KARACHI: Pakistan’s stock market witnessed a sharp rally on Monday, gaining more than 4,500 points after the announcement of a peace agreement between the United States and Iran, which boosted investor confidence across global financial markets.
The benchmark KSE-100 Index climbed to around 176,900 points during early trading, recovering strongly from the previous session’s close of 172,399 points. The significant upward movement reflects renewed optimism among investors following easing geopolitical tensions in the Middle East.
Market analysts say the rally was driven by expectations of improved global stability, particularly after reports that the US and Iran had reached a framework agreement to end hostilities and reopen key trade routes, including the Strait of Hormuz.
A decline in global crude oil prices further supported the bullish trend. International oil benchmarks fell by more than 4–5%, easing concerns over inflation and energy import costs for oil-dependent economies like Pakistan.
Other Asian markets also responded positively, with major indices in South Korea, Japan, China, and Hong Kong recording notable gains amid the same global developments.
Experts caution, however, that while the agreement has improved sentiment, it remains in a preliminary stage, with key political and security issues still to be resolved during upcoming negotiations.
The formal signing of the agreement is expected later this month in Switzerland, where US, Iranian, and mediating countries will discuss implementation details.
