Pakistan stocks staged a powerful recovery on Monday as easing US-Iran tensions and a sharp drop in global oil prices reignited investor confidence following a weekend of positive diplomatic and economic developments.
The benchmark KSE-10 Index gained 2.31% or 3,881 points to close the session at 171,725 points.
An analyst at Ismail Iqbal Securities said the index closed higher supported by declining oil prices and expectations of easing US-Iran tensions. “Renewed diplomatic engagement progresses toward finalizing a lasting agreement boosting investor sentiment.”
An analyst at Topline Securities said investor confidence improved significantly following positive developments over the weekend regarding negotiations between Iran and the United States, with reports indicating that discussions may reach a conclusion in the near term.
“Sentiment was further bolstered by a sharp decline in international oil prices, which fell by nearly $6 per barrel.”
The bullish momentum was primarily driven by heavyweight stocks, including Habib Bank Limited, Fauji Fertilizer Company, United Bank Limited, Engro Holdings, and Lucky Cement, which collectively contributed 1,315 points to the benchmark index and played a key role in sustaining the rally.
Market participation remained healthy, with total traded volume reaching 506 million shares, while overall turnover settled at Rs31.1 billion. Bank of Punjab emerged as the volume leader, with 27 million shares traded during the session.
