Stocks moved higher on Monday as falling oil prices and hopes of fresh US-Iran talks lifted investor sentiment.
The Pakistan Stock Exchange’s benchmark KSE-100 Index rose as much as 2,891.83 points, or 1.64%, to hit an intraday high of 178,985.94. At its lowest level during the session, the index stood at 178,045.68, still up 1,951.57 points, or 1.11%.
“Trump’s message on delaying the attacks, having Israel on board for the plan in exchange for a rapid deal, is driving hopes of peace and falling oil prices. The market is happy to hear that and thus is positive,” AAH Soomro, an independent investment and economic analyst, said.
Huzaifa Riaz, Director at Mayari Securities (Pvt) Limited, said the market opened on a positive note, supported by a decline in global oil prices amid easing geopolitical risks.
“On the local front, geopolitics may drive a broader market direction, while the earnings season is expected to drive stock-specific activity where surprises emerge,” he said.
Oil prices tumbled on Monday as hopes of a peace deal in the Middle East grew after US President Donald Trump said talks with Iran would take place later in the day.
Brent crude futures sank more than 4% to $83.88 after Trump said negotiations with Tehran were expected to begin on Monday.
The US president had earlier called off an imminent attack on Iran to pursue a deal to reopen the Strait of Hormuz and resolve the impasse over Tehran’s nuclear capabilities.
Trump said on Sunday that negotiations would cover the Strait of Hormuz and ultimately the denuclearisation of Iran.
His comments came after he had threatened to hit Iran “very hard” and was reportedly considering renewed attacks, including against energy infrastructure.
However, Trump pulled back from that threat on Saturday, saying the “perimeters” of a deal were in place.
“Now what we’re doing is we’re talking to them in the form of a negotiation. It begins tomorrow afternoon,” Trump told reporters aboard Air Force One on Sunday, without providing details of the venue or participants.
Iran also said on Sunday that it was nearing a deal with Oman over a new route through the Strait of Hormuz.
A dispute over control of the waterway had sparked the latest flare-up in regional tensions, as Tehran refused to let ships travel any route other than one hugging the Iranian coast.
The decline in crude prices was also supported by an agreement between Saudi Arabia, Russia and five other key OPEC+ members to boost production by 188,000 barrels per day from September.
PSX had closed higher on Friday, with the KSE-100 Index gaining 546.13 points, or 0.31%.
