KARACHI, Pakistan

After days of relentless selling pressure, a powerful resurgence of buying momentum swept through the Pakistan Stock Exchange (PSX) on Monday. The benchmark KSE-100 Index extended its gains throughout the trading session, ultimately settling with a formidable 4.23% increase.

At the close of trade, the benchmark index rested at 178,262.33, marking a staggering ascent of 7,241.13 points. This remarkable rally signifies a profound shift in investor sentiment, transitioning from acute apprehension to robust confidence.

“The primary catalyst for this upward trajectory is the notable 4-5% decline in global oil prices,” observed Sana Tawfik, Head of Research at Arif Habib Limited (AHL).

During the preceding week, the PSX remained under severe duress amid escalating geopolitical tensions in the Middle East. The Houthi movement’s announcement of a blockade in the Red Sea had severely dampened investor confidence, propelling international Brent crude oil prices above the US$100 per barrel threshold for the first time in nearly two months. This triggered broad-based liquidation across the market.

However, share markets delivered a guarded yet optimistic response on Monday as a temporary pause in hostilities in the Gulf dragged commodity prices lower. This development is actively ameliorating inflation risks and boosting bond yields ahead of a packed week of central bank meetings and critical corporate earnings reports.

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