Key market drivers were \u201cbudget, oil and interest rate expectations\u201d, says analyst
\nislamabad
\nThe equity market surged on Monday as investors cheered a US-Iran breakthrough, tumbling oil prices and what analysts described as a growth-tilted federal budget, easing fears of renewed inflationary pressure and an interest-rate hike.
\nThe Pakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 Index settled at 177,039.82 points, up 4,639.92 points, or 2.69%, from the previous close of 172,399.90.
\nDuring the session, the index climbed to an intraday high of 177,176.72, gaining 4,776.82 points, or 2.77%, before retreating to a low of 175,085.79, reflecting an increase of 2,685.89 points, or 1.56%.
\n\u201cA budget that has directionally changed from consolidation to growth, along with the solution to the Iran-US conflict, has buoyed sentiment,\u201d said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
\n\u201cIt has also tamed expectations of a rate hike and triggered buying across all sectors, especially construction,\u201d he said, adding that the key market drivers were \u201cbudget, oil and interest rate expectations\u201d.
\nOil prices tumbled and global stocks rallied on Monday after the United States and Iran said they had reached a deal to end their war and reopen the Strait of Hormuz, sending relief through global markets.
\nThe two sides confirmed an announcement from mediator Pakistan, with a signing ceremony set to take place in Switzerland on June 19, bringing an end to three months of conflict that had sent energy prices soaring and revived fears of another inflation spike.
\nPrime Minister Shehbaz Sharif said the United States and Iran would sign a memorandum of understanding in Switzerland on Friday, with Pakistan having served as a mediator. US President Donald Trump said the Strait of Hormuz would be opened \u201ctoll free\u201d and that a US naval blockade of Iranian ports would also end.
\n\u201cThe Deal with the Islamic Republic of Iran is now complete,\u201d Trump wrote on social media.
\n\u201cShips of the World, start your engines. Let the oil flow!\u201d he added.
\nIran\u2019s Deputy Foreign Minister Kazem Gharibabadi said the deal put an \u201cimmediate end\u201d to the war and that talks on a \u201cfinal agreement\u201d would be held within two months.
\nCrude prices fell as much as 5% on Monday, with West Texas Intermediate approaching $80 a barrel for the first time since the start of March. Brent was down more than 4% at around $83.60.
\nThe sharp decline in oil prices soothed concerns that renewed inflationary pressure could push central banks towards fresh interest rate hikes. On the domestic front, analysts said the Pakistan Stock Exchange was supported by the federal budget for FY27, robust remittance inflows and easing geopolitical tensions.<\/p>\n","protected":false},"excerpt":{"rendered":"
Key market drivers were \u201cbudget, oil and interest rate expectations\u201d, says analyst islamabad The equity market surged on Monday as investors cheered a US-Iran breakthrough, tumbling oil prices and what analysts described as a growth-tilted federal budget, easing fears of renewed inflationary pressure and an interest-rate hike. The Pakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 Index …<\/p>\n","protected":false},"author":4,"featured_media":60338,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-99127","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/99127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/comments?post=99127"}],"version-history":[{"count":1,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/99127\/revisions"}],"predecessor-version":[{"id":99146,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/99127\/revisions\/99146"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media\/60338"}],"wp:attachment":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media?parent=99127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/categories?post=99127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/tags?post=99127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}