PSX surges over 950 points despite geopolitical risks as Hormuz tensions persist

Bulls returned to the Pakistan Stock Exchange (PSX) as the KSE-100 Index jumped over 950 points on Monday, recovering part of last week’s losses, even as geopolitical tensions around the Strait of Hormuz persisted.

According to the PSX website, the market opened on a strong note, with the KSE-100 Index rising to 166,874.78, up 3,880.61 points in early trading. Momentum continued through the session, with the index reaching an intraday high of 167,245.54, marking a gain of 4,251.37 points.

Widespread buying was seen across major sectors, including oil and gas exploration companies, oil marketing companies, power generation, refineries, automobile assemblers, cement, commercial banks and pharmaceuticals. Key stocks such as ARL, HUBCO, MARI, OGDC, PPL, POL, HBL, MCB, NBP and UBL traded in positive territory.

By the close, the market lost much of the gains and settled at 163,948.94, up by 954.77 or 0.59% from the previous close.

Monday’s rebound follows a weak previous week, during which the KSE-100 Index declined 4.5%, losing 7,677.87 points to close at 162,994.17 amid geopolitical uncertainty and tighter financial conditions.

In April, the KSE-100 Index had gained 14,251 points on a month-on-month basis, posting a 9.6% return to close at 162,994 points, though trading remained volatile. Early gains were supported by expectations of a US–Iran ceasefire, but sentiment weakened later in the month due to weaker corporate earnings and renewed geopolitical uncertainty.

Looking ahead, market direction in May 2026 is expected to remain tied to geopolitical developments, according to an outlook report by Arif Habib Limited. The report said investor sentiment could improve if the IMF Executive Board approves a $1.2 billion tranche on May 8, while upcoming budget developments may provide additional support.

Globally, shares edged higher in Asia while oil prices flatlined on Monday as ​investors drew comfort from signs of patchy progress in settling the Middle East conflict at the start of a week packed with earnings and key economic data.

President Donald Trump said the U.S. would begin an effort to free up ships stranded in the Strait of Hormuz on Monday morning, though he gave no details of the plan.

A statement from the U.S. ​Central Command said support would include guided-missile destroyers, over 100 land- and sea-based aircraft, and 15,000 service members. A report from Axios later claimed the Navy would not necessarily escort ships ​through the strait.

Iran earlier said the U.S. had responded to its 14-point proposal via Pakistan and it was reviewing the response, though Trump said it was ⁠unlikely to be acceptable.

Brent crude futures were up $2.05, or ​1.9%, at $110.22 a barrel by 1307 GMT, having hit a session high of $114.30. ⁠U.S. West Texas Intermediate was up 47 cents, or 0.5%, at $102.41 a barrel, after rising to as ​high as $107.46 earlier on Monday.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 3%, led by tech-heavy South Korean stocks which returned from holiday with a jump of 4.6%. Hong Kong's Hang Seng index gained 1.7%.

EUROSTOXX 50 futures and DAX futures each added 0.3%. S&P 500 futures gained 0.1% and Nasdaq futures rose 0.3%, ​as markets braced for more than 100 earnings reports this week.