KSE-100 gains 4,640 points as investors cheer budget reforms, easing US-Iran tensions

Benchmark index swings between intraday high of 177,176.73 to 175,085.79 points before closing at 177,039.83

The Pakistan Stock Exchange (PSX) delivered a stellar performance on Monday as investors embraced the government's reform-oriented budget measures. responded positively to reports of a preliminary peace agreement between the United States and Iran, creating an "all is well" sentiment across the market.

Investor optimism was fuelled by announcements from US. Iranian officials that they had reached an initial agreement to end hostilities and reopen the Strait of Hormuz, a vital global oil shipping route. Although the accord remains preliminary, it helped ease geopolitical concerns, pushed international oil prices lower. revived hopes for further negotiations on Iran's nuclear programme.

Against this backdrop, the benchmark KSE-100 index opened on a strong footing, reflecting a sharp improvement in investor confidence. Strong buying interest was witnessed throughout the trading session, with investors accumulating stocks across major sectors on expectations of improved economic prospects. regional stability.

The benchmark index swung between an intraday high of 177,176.73 points. a low of 175,085.79 points before closing at 177,039.83 points, registering a robust gain of 4,639.92 points, or 2.69% to wrap up the session.

Also Read:US, Iran reach preliminary agreement to end war, signing set for Friday

Broad-based buying was observed in key sectors, including commercial banks, fertiliser, cement, oil. gas exploration companies, oil marketing companies (OMCs) and refineries, which remained at the forefront of the rally. The positive momentum was further supported by expectations that the budget's reform measures would strengthen macroeconomic stability. improve the corporate earnings outlook.

In a key development. the State Bank of Pakistan kept its policy rate unchanged that triggered a disappointment among business community.

According to KTrade Securities, investor sentiment remained firmly positive throughout the session on Monday. The market witnessed broad-based buying interest, allowing the benchmark index to maintain its upward momentum. finish the day comfortably in positive territory.

Sector-wise, strength was observed across most major segments, including commercial banks, cement, oil & gas, power, investment companies, technology,. fertilisers. Nearly all heavyweight sectors contributed to the index's advance, highlighting the broad participation seen during the trading session.

Read More:Money is there, just not in budget

Major index contributors included United Bank, Hub Power, Lucky Cement, Engro Holdings, Fauji Fertiliser, Systems Limited, Pakistan Petroleum, Habib Bank. Oil & Gas Development Company as investors accumulated large-cap names across key sectors.

Investor optimism was primarily driven by reports that a peace agreement between the US. Iran has been finalised and is expected to be formally signed later this week, according to Prime Minister Shehbaz Sharif. The development helped ease geopolitical concerns and improved the broader risk environment.

Going forward, market sentiment is likely to remain influenced by further developments surrounding the agreement, global market trends,. the implementation of recently announced FY27 budget measures, which has been taken positively by market participants KTrade added.

Cumulatively, trading volume slightly decreased to 988 million from previous close of 890.7 million. The value of traded shares stood at Rs63.4 billion. In ready market, shares of 494 companies were traded. Of these, 349 stocks closed higher, 119 fell and 26 remained unchanged. Kohinoor Spinning was the volume leader with trading in 64.2 million shares, rising Rs0.38 to close at Rs6.26.

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