The Pakistan Stock Exchange (PSX) kicked off the week with a robust rally on Monday, as the benchmark KSE-100 Index surged by more than 2,100 points, driven by widespread buying across major sectors including commercial banks, cement, fertilizer, and oil & gas exploration companies.

Investor sentiment strengthened after geopolitical tensions eased following comments by US President Donald Trump, who stated that a planned military strike against Iran had been shelved. The development reduced fears of an immediate escalation in the Middle East, boosting risk appetite in regional markets.

The easing geopolitical concerns also weighed on international oil prices during Asian trading, as investors reduced the risk premium previously attached to potential disruptions in global energy supplies.

The benchmark KSE-100 Index closed the session at 178,200.02, registering a gain of 2,105.91 points, or 1.20%. The index remained in positive territory throughout the trading session, reaching an intraday high of 178,985.94 (+2,891.83 points) and an intraday low of 177,759.88 (+1,665.77 points).

Trading activity remained healthy, with 255.20 million shares exchanged among KSE-100 constituents. Market breadth was overwhelmingly positive, as 79 companies advanced, 20 declined, while one stock closed unchanged.

Among the day's best-performing stocks, Gadoon Textile Mills Limited (GADT) surged 10.00%, followed by TPL REIT Fund I (TPLRF1) (+6.59%), Arif Habib Corporation Limited (AHCL) (+4.71%), DG Khan Cement Company Limited (DGKC) (+4.11%), and Cherat Cement Company Limited (CHCC) (+3.96%).

On the losing side, IBL Finance Limited (IBFL) declined 4.44%, while Mehmood Textile Mills Limited (MEHT) fell 2.87%. Other notable laggards included Habib General Finance Limited (HGFA) (-2.40%), Nestlé Pakistan Limited (NESTLE) (-1.80%), and Packages Limited (PKGS) (-1.46%).

In terms of index-point contribution, Fauji Fertilizer Company Limited (FFC) emerged as the biggest supporter of the benchmark by contributing 207.81 points. Other major contributors included Meezan Bank Limited (MEBL) (+130.39 points), Lucky Cement Limited (LUCK) (+126.38 points), Pakistan Petroleum Limited (PPL) (+120.41 points), and Engro Holdings Limited (ENGROH) (+115.39 points).

Meanwhile, Nestlé Pakistan Limited (NESTLE) exerted the largest negative impact on the benchmark, dragging the index down by 22.69 points. Additional pressure came from MCB Bank Limited (MCB) (-11.97 points), Colgate-Palmolive (Pakistan) Limited (COLG) (-10.59 points), Packages Limited (PKGS) (-7.47 points), and IBL Finance Limited (IBFL) (-7.45 points).

Sector-wise, the rally was led by Commercial Banks, which added 518.64 points to the benchmark. Significant support also came from Cement (+366.00 points), Fertilizer (+294.62 points), Oil & Gas Exploration Companies (+282.54 points), and Investment Banks, Investment Companies & Securities Companies (+125.38 points).

On the downside, losses in Food & Personal Care Products reduced the benchmark by 31.42 points, followed by Paper, Board & Packaging (-7.47 points), Synthetic & Rayon (-7.45 points), Close-End Mutual Funds (-3.27 points), and Automobile Parts & Accessories (-1.86 points).

In the broader market, the PSX All-Share Index settled at 107,584.98, gaining 1,054.10 points, or 0.99%.

Overall market participation remained strong, with 785.36 million shares traded during the session. Although total volume declined from 880.95 million shares recorded in the previous session, the total traded value rose significantly by Rs8.18 billion to Rs33.14 billion, indicating increased activity in higher-value stocks.

A total of 359,748 trades were executed across 493 listed companies, with 305 stocks closing higher, 152 lower, and 36 remaining unchanged, highlighting broad-based strength across the market.

Among the most actively traded stocks, TSBL topped the volume chart with 113.32 million shares, followed by TPL Properties Limited (TPLP) (83.71 million shares), Cnergyico PK Limited (CNERGY) (68.96 million shares), Pakistan Refinery Limited (PRL) (37.79 million shares), and TPL Corp Limited (TPL) (36.47 million shares).

Despite Monday's impressive rally, the KSE-100 Index remains down 2,102 points (1.17%) in the current fiscal year. However, on a calendar-year basis, the benchmark has gained 4,146 points (2.38%), reflecting improving investor confidence and resilience in Pakistan's equity market.