Pakistan Stock Exchange (PSX) opened the week on a strong footing, with the benchmark KSE-100 index surging sharply in early trade.

Investor sentiment was buoyed by expectations of a potential peace agreement between the United States and Iran. Optimism around stable global oil prices further supported broad-based buying across the market.

At 9:34am, the index climbed to 166,269.56, registering a gain of 3,275.56 points or 2.01%. However, selling pressure intensified after reports that Iran forced a US warship to turn back from entering the Strait of Hormuz, reviving geopolitical concerns and weighing on sentiment.

The index touched an intra-day high of 167,245.54 before slipping to a low of 163,417.84 as profit-taking emerged later in the session. Despite the late-session volatility, the KSE-100 managed to close higher by 954.77 points, or 0.59%, at 163,948.94.

According to KTrade Securities, Ahmed Sheraz, KSE-100 closed at 163,948, up 954 points (+0.59% DoD), wrapping up a wild session. The index touched an intra-day high of 167,245 and dipped to 163,417, reflecting sharp swings as sentiment kept flipping with every headline.

Also Read: Oil up as US-Iran deal remains elusive

The day kicked off strong, fuelled by a cooling in international oil prices. Brent, which was flexing near $126/bbl last week, softened to around $107–108, giving the market breathing room and pushing the index comfortably into green territory early on.

However, midway through, the mood snapped. News of Iranian engagement with US ships near the Strait of Hormuz sent oil spiking back toward $113–114, triggering panic selling. The market gave up most of its gains and briefly looked set for a red close before staging a late-session recovery to finish nearly 1,000 points up.

Volumes clocked in at 355million shares, with CNERGY, SSGC, and BOP leading the activity board. Index-wise, UBL, MCB, FFC, OGDC, HBL, and PPL carried the load, with E&Ps reacting to oil volatility. For now, the market is following geopolitics rather than fundamentals, and direction will remain tied to how the Strait of Hormuz situation unfolds and the outcome of US-Iran talks.

Overall trading volume decreased to 696.7 shares against the previous close of 837.3 million. Value of traded shares stood at Rs34.9 billion. Shares of 487 companies were traded. Of these, 295 closed high, 151 fell, and 41 remained unchanged. Hascol Petroleum was the volume leader with trading in 51.6million shares, rising Rs0.16 to close at Rs21.33.