Lead

Pakistan's stock market opened the week on a strong note, with the benchmark KSE-100 index gaining more than 7,000 points during intraday trade on Monday as easing geopolitical tensions in the Middle East and a sharp decline in global oil prices lifted investor sentiment.

By 3:09pm, the index had gained 7,081.19 points to cross the 178,000-point level, according to Dawn. Earlier in the session, at 9:50am, it had risen 4,501.33 points to 175,522.53, and by 10:30am it was up 5,068.88 points at 176,090.08.

The rally came after Iran and the United States held their fire on Monday, handing Gulf shipping and the oil industry a respite from missile strikes, as reported by Dawn. Donald Trump's UN envoy said the president was "giving talks some space."

Coverage Comparison

Dawn's reporting across multiple updates tracked the index's steady climb through the morning and afternoon, from a gain of more than 4,000 points in early trade to more than 7,000 points by the close of the session. The outlet consistently attributed the rally to easing geopolitical tensions and a decline in oil prices, with later updates also citing improved investor sentiment and expectations about the central bank's monetary policy decision.

One Dawn report noted that the stock market had remained under pressure last week, with the KSE-100 index losing 2.7 per cent amid escalating tensions in the Middle East, rising oil prices, and cautious investor sentiment. In that context, Monday's surge marked a sharp reversal.

Key Claims

  • The KSE-100 index gained 7,081.19 points to cross the 178,000-point level by 3:09pm, as reported by Dawn.
  • Earlier in the session, the index had risen 4,501.33 points to 175,522.53 by 9:50am, and 5,068.88 points to 176,090.08 by 10:30am, according to the same outlet.
  • Awais Ashraf, director of research at AKD Securities, told Dawn that investor sentiment improved after the US and Iran paused military strikes, raising hopes for a diplomatic resolution to the conflict and the resumption of shipping through the Strait of Hormuz.
  • Ashraf said the easing of tensions has increased the likelihood that the State Bank of Pakistan (SBP) will maintain its policy rate at the monetary policy announcement scheduled for later in the day. He noted that the central bank is likely to adopt a cautious stance, assessing developments in the Middle East and the economic impact of recent floods, while a "disinflationary trend, a comfortable external account position, weakening leading economic indicators, and a contraction in money supply" continue to support the case for monetary easing in the coming months.
  • Mettis Global, a web-based financial portal, attributed the rally to "easing geopolitical tensions and a sharp decline in global oil prices," as cited by Dawn.
  • Oil prices tumbled on Monday, with the price of Brent crude shedding more than seven per cent at one point to briefly drop below $90 a barrel, while US counterpart West Texas Intermediate was down four per cent at $85.45 a barrel, according to Dawn.
  • Last week, the KSE-100 index lost 2.7 per cent, closing at 171,021.20 after shedding 4,782 points, as concerns over the US-Iran conflict overshadowed positive domestic developments, including an upgrade in Pakistan's sovereign credit rating, as reported by Dawn.

Perspectives

Investor sentiment (Awais Ashraf, AKD Securities): The pause in US-Iran strikes has improved sentiment, raising hopes for a diplomatic resolution and the resumption of shipping through the Strait of Hormuz. The easing of tensions also increases the likelihood that the SBP will hold its policy rate, though the central bank's cautious stance may give way to monetary easing in coming months.

Market analyst (Mettis Global): The rally is attributed to easing geopolitical tensions and a sharp decline in global oil prices, which improved investor sentiment.