KSE-100 Index jumps over 4,500 points as investors welcome easing tensions and pro-growth budget measures.
Image: The News Pakistan
The Pakistan Stock Exchange surged on Monday as investors reacted positively to the US-Iran peace agreement, lower oil prices and growth-focused budget measures.
The benchmark KSE-100 Index climbed to an intraday high of 176,917 points, gaining more than 4,500 points, or 2.6%.
Analysts said the breakthrough between the US and Iran reduced fears of higher inflation and further interest rate increases, encouraging buying across major sectors.
Construction, cement and export-related stocks led the rally as investors welcomed budget incentives and tax relief measures.
Global markets also gained after the US and Iran agreed to end hostilities and reopen the Strait of Hormuz, easing concerns over energy supply disruptions.
Oil prices fell sharply, with Brent crude dropping more than 4%, helping improve sentiment in emerging markets, including Pakistan.
The federal budget for FY2026-27 also supported the market. Investors welcomed lower taxes for businesses, incentives for exporters and relief measures for the cement and refinery sectors.
Market participants are now awaiting the State Bank of Pakistan’s monetary policy decision, with expectations of stable interest rates following the decline in oil prices and easing geopolitical risks.
