PSX rallies over 2,800 points as US-Iran deal boosts investor sentiment

The KSE-100 Index climbes 2,836 points, or 1.65 percent, reaches 175,236 points at 11:00am compared to the previous close of 172,399 points

KARACHI: (UrduPoint/UrduPoint / Pakistan Point News-June 15^th, 2026) The pakistan stock exchange (psx) witnessed a strong bullish trend on Monday, with the benchmark KSE-100 Index surging by more than 2,800 points during intraday trading following reports of a preliminary agreement between the United States and Iran aimed at de-escalating a prolonged conflict.

The KSE-100 Index climbed 2,836 points, or 1.65 percent, reaching 175,236 points at 11:00am compared to the previous close of 172,399 points.

Market analysts attributed the sharp rise to improved global sentiment after news emerged of progress in US-Iran negotiations, alongside expectations that the Strait of Hormuz would remain open for global shipping routes.

Oil prices also eased in international markets, easing inflation concerns and further supporting bullish momentum in equities.

Commenting on the market movement, research director at Chase Securities Yousuf M. Farooq said investor confidence improved significantly on the back of geopolitical developments and expectations of stability in global energy supply routes.

He noted that the market continues to trade at a price-to-earnings ratio below its historical average, while macroeconomic indicators such as the current account remain stable.

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He added that recent budget measures and reduced super tax pressures have strengthened the medium-term outlook for equities.

Farooq further said that sustained easing in oil prices, coupled with expected monetary easing over the next two years and continued corporate earnings growth, could support a broader re-rating of the stock market.

Similarly, AKD Securities research director Awais Ashraf said the rally was driven primarily by positive sentiment surrounding the US-Iran agreement.

He added that fiscal consolidation measures in the latest budget and relief measures for small and medium-sized enterprises have also contributed to improved investor confidence.

However, he noted that market participants remain cautious ahead of the State Bank of Pakistan’s Monetary Policy Committee (MPC) meeting scheduled for later in the day.

Ashraf said expectations are that the central bank will maintain the current policy rate, citing an improving macroeconomic outlook, declining oil prices, controlled imports and rising foreign exchange reserves.

He further observed that real interest rates are likely to remain significantly positive over the next year, assuming gradual Currency adjustment and normalization of global oil prices through 2026.