PSX Surges as Middle East Tensions Show Easing

ISLAMABAD: (Web Desk) – The Pakistan Stock Exchange (PSX) staged a strong recovery on Monday as investors reacted positively to signs of possible diplomatic progress in the Middle East. Optimism grew after Donald Trump announced plans to help ships stranded in the Strait of Hormuz.

In early trading, the benchmark KSE-100 Index surged by 3,685 points, reaching 166,679, reflecting a gain of over 2.2 percent.

Investor activity was broad-based, with strong buying seen in major sectors such as automobile manufacturing, cement, banking, oil and gas exploration, oil marketing companies, and power generation.

Key heavyweight stocks—including ARL, HUBCO, MARI, OGDC, PPL, POL, HBL, MCB, NBP, and UBL—posted gains, helping drive the market higher.

This rebound follows a difficult previous week, during which the market remained under pressure due to geopolitical tensions and tighter financial conditions that weighed on investor confidence.

PSX Extends Losses as KSE-100 Falls Over 1,000 Points

Across Asia, markets also showed cautious optimism. Stock prices edged higher while oil prices remained relatively stable, as investors took some comfort from early signs of progress in resolving the Middle East conflict. However, uncertainty still lingers.

In currency markets, the Japanese yen saw a sudden surge against the US dollar, briefly strengthening amid speculation of possible intervention by Japanese authorities to support the currency.

Meanwhile, the US confirmed plans to assist ships stuck in the Strait of Hormuz, though details of the operation remain unclear. According to United States Central Command, the mission could involve naval destroyers, over 100 aircraft, and around 15,000 personnel.

Reports suggest that the US Navy may not directly escort vessels, while Iran continues to evaluate Washington’s response to its proposed 14-point plan aimed at resolving the conflict. Despite this, Trump has indicated that the proposal may not meet US expectations.