KARACHI: Falling oil prices, thanks to the resumption of energy shipping via the Strait of Hormuz following the signing of the ‘Islamabad MoU’, continued to fuel peace optimism, triggering buying interest across multiple sectors. As a result, the benchmark KSE-100 index maintained its recovery for the fourth straight session on Thursday.

Topline Securities Ltd said the Pakistan Stock Exchange (PSX) witnessed another bout of bullish momentum, with investors maintaining a positive stance throughout the session.

The benchmark index surged to an intraday high of 1,358 points at 181,869.34 before settling at 181,398.22, up 887.19 points or 0.49 per cent on a day-on-day basis.

The upward momentum was primarily fuelled by the continued decline in international crude oil prices, which improved the macroeconomic outlook and strengthened investor confidence. Further supporting sentiment was growing optimism about the anticipated signing of a peace agreement MoU between Iran and the US, reportedly scheduled for Friday. The development raised hopes of easing geopolitical tensions in the region, encouraging risk-taking and broad-based buying across key sectors.

Index heavyweights Hub Power, Service Industries, Fauji Fert­iliser, Engro Holdings, and Pakistan Petroleum were the primary drivers of upside momentum, collectively adding 679 points to the benchmark.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market sentiment stayed positive as investors engaged in selective buying, particularly in blue-chip cyclical stocks.

On the macro front, expected declines in high-speed diesel and petrol prices by Rs33.5 and Rs21.38 per litre, effective from June 20, respectively, driven by lower global oil prices and easing geopolitical tensions, continued to support the outlook for inflation and external stability.

Market activity remained strong, with volume at 1.24bn shares. However, the traded value dipped 16.18pc to Rs57.8bn. Kohinoor Spinning Mills led in volume, with over 230m shares traded.

Analysts anticipate that the market will likely sustain its positive momentum in the short term, buoyed by stable monetary policy prospects, improving external account indicators, easing geopolitical tensions, and expectations of lower fuel prices. However, sporadic profit-taking may result in more gradual gains following the recent robust rally.

Published in Dawn, June 19th, 2026