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KARACHI: In the first session after the announcement of the federal budget for 2026-27, the Pakistan Stock Exchange (PSX) staged a strong recovery rally on Monday amid renewed buying interest across the board. Investor sentiment was boosted by reports of a peace agreement between the US and Iran, seen as a first step towards lasting peace in the Middle East, which helped propel the benchmark KSE-100 index above 177,000 points.
Following the development, global oil prices resumed their decline, hitting an almost three-month low as hopes revived for the reopening of the Strait of Hormuz, easing supply concerns and reducing inflationary pressures on oil-importing countries such as Pakistan. Petroleum prices in the country had surged sharply following the outbreak of the US-Israeli war with Iran on Feb 28.
However, Pakistani leaders reportedly played a key diplomatic role in efforts to mediate between the two countries and facilitate the agreement.
Topline Securities Ltd said the benchmark KSE-100 index ended trading on a buoyant note, surging 4,639 points, or 2.69 per cent, to close at 177,039 points. Positive sentiment prevailed at the PSX as market participants welcomed the government’s reform-oriented budget measures and responded favourably to reports of a preliminary peace agreement between the US and Iran, which also eased concerns over disruptions to global oil supplies.
