PSX Rally gathered strong momentum on Monday as the Pakistan Stock Exchange opened the trading week with an impressive surge, driven by a sharp decline in international oil prices and renewed hopes of reduced geopolitical tensions in the Middle East. Investor sentiment strengthened immediately after the opening bell, pushing the benchmark KSE-100 index sharply higher amid broad-based buying across major sectors.

The benchmark KSE-100 index climbed to 178,836.99 points by 9:34am, gaining 2,742.88 points, or 1.56%, from the previous close of 176,094.11. The rally reflected renewed confidence among investors, who responded positively to developments in global energy markets and improving regional stability.

After the strong opening, the market surrendered part of its early gains but remained firmly in positive territory throughout the session. More than 100 words into the trading day, the PSX Rally continued to attract investor attention as the KSE-100 index traded at 177,948.83 points by 1:35pm, maintaining an increase of 1,854.72 points, or 1.05%.

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During intraday trading, the benchmark index touched a high of 178,985.94 points before easing slightly. It recorded an intraday low of 178,045.68 points, highlighting continued buying interest despite some profit-taking. Market participation remained robust, with approximately 177.11 million shares changing hands and generating a turnover of nearly Rs13.77 billion.

The bullish momentum followed a significant decline in global crude oil prices, which fell by more than $4 per barrel after US President Donald Trump delayed any new military action against Iran while pursuing diplomatic efforts aimed at limiting Tehran’s nuclear programme and reopening the Strait of Hormuz.

Lower oil prices eased concerns over supply disruptions and inflationary pressures, improving the outlook for Pakistan’s economy and strengthening investor appetite for equities. The development also reduced fears of higher import costs for energy-dependent sectors.

Buying activity remained concentrated in heavyweight sectors that typically lead market gains. Commercial banks attracted strong investor interest, while oil marketing companies, cement manufacturers, oil and gas exploration firms, and power generation companies also recorded healthy buying as investors positioned themselves for improved economic conditions.

Market analysts said the combination of declining energy prices, easing geopolitical uncertainty, and renewed optimism about economic stability created favourable conditions for equities, helping the Pakistan Stock Exchange begin the week on a strong and confident note. Trading continued throughout the session as investors monitored both international developments and domestic market trends.