The KSE-100 Index rally lifted Pakistan Stock Exchange shares on Monday. The index touched 176,917.76, up 4,517.86 points, or 2.62%, during intraday trade.
The index also touched a low of 175,524.22, up 3,124.32 points, or 1.81%, from the previous close of 172,399.90.
The US-Iran conflict resolution and a growth-focused budget had lifted the market sentiment. The developments also eased expectations of an interest-rate hike and triggered buying across sectors, especially construction.
Oil prices fell after the United States and Iran said they had reached a deal to end their war and reopen the Strait of Hormuz. For example, West Texas Intermediate approached USD 80 a barrel. Meanwhile, Brent crude fell more than 4% to about USD 83.60.
Prime Minister Shehbaz Sharif said the United States and Iran would sign a memorandum of understanding in Switzerland on June 19. Moreover, US President Donald Trump said the Strait of Hormuz would reopen “toll-free” and that the US naval blockade of Iranian ports would end.
On the domestic side, analysts cited the FY27 federal budget. They also mentioned remittance inflows and easing geopolitical tension as key support for equities.
Finance Minister Muhammad Aurangzeb unveiled the federal budget on Friday with a 4% GDP growth target. The budget projects a fiscal deficit of 3.6% of GDP. This is supported by Rs1.0 trillion in provincial contributions and 17.6% growth in tax revenue.
Read: US-Iran Peace Agreement Draws Global Praise For Pakistan
AKD Research called the budget broadly positive for the market, citing no aggressive revenue measures and Super Tax relief. It said a 2% cut in the Super Tax rate for companies earning more than Rs500 million could benefit about 67% of PSX-listed companies.
The State Bank of Pakistan’s Monetary Policy Committee is scheduled to hold the final FY26 policy review on Monday. The policy rate was last raised by 100 basis points to 11.5% on April 27.
