Pakistan’s equity market gained on Monday after signs of progress in US–Iran talks helped ease tensions in the Middle East. The improved diplomatic outlook reduced worries about potential supply disruptions in global energy markets.
Oil prices also slipped following the conclusion of talks held in Switzerland, as traders reacted to expectations of a more stable geopolitical environment. Lower oil prices typically ease pressure on import-dependent economies like Pakistan, supporting investor sentiment.
In the local market, buying activity increased as investors responded positively to the decline in crude oil prices and hopes of reduced global uncertainty. Analysts say easing oil costs could help improve Pakistan’s inflation outlook and external account balance.
Market experts added that any continued progress in negotiations could further support risk appetite in emerging markets, including Pakistan.