The Pakistan Stock Exchange's benchmark KSE-100 index soared past the 178,000-point mark on Monday, gaining more than 7,000 points in a single session as a confluence of easing geopolitical tensions, stable monetary policy, and attractive valuations drove a broad-based rally. The index closed at 178,262.33 points, up 7,241.13 points or 4.23%, after touching an intra-day high of 178,588.33 points. Main Developments The KSE-100 index opened the week strong, climbing 4,501.33 points to 175,522.53 by 9:50am from the previous close of 171,021.20. By 3:09pm, it had gained 7,081.19 points to cross the 178,000 level, eventually settling at 178,262.33 points for the session. Leading performers included UBL, FFC, ENGROH, MEBL, and LUCK, which collectively contributed approximately 2,546 points to the benchmark index. The rally was broad-based, with Topline Securities noting improved investor sentiment and buying across multiple sectors. Read also: Why Oil Prices Tumbled on a Fragile Ceasefire Background The stock market had been under pressure last week, with the KSE-100 index losing 2.7% — shedding 4,782 points to close at 171,021.20 — amid escalating US-Iran tensions, rising international oil prices, and cautious investor sentiment. That decline occurred despite positive domestic developments including an upgrade in Pakistan's sovereign credit rating. Monday's rally reversed those losses as the US and Iran paused military strikes, raising hopes for a diplomatic resolution to the Middle East conflict. Oil prices tumbled on the news, with international benchmark Brent crude shedding more than 7% to briefly drop below $90 per barrel, while US crude fell 4% to $85.45. The Strait of Hormuz shipping route, a critical chokepoint for global oil trade, could potentially resume normal operations if the ceasefire holds. Why It Matters The State Bank of Pakistan maintained its policy rate at 11.5% in its monetary policy announcement, a decision analysts had widely expected. Awais Ashraf, director of research at AKD Securities, termed the move a cautious stance, noting the central bank would likely assess further developments in the Middle East and the economic impact of recent floods before adjusting rates. Despite the rate hold, Ashraf pointed to an ongoing disinflationary trend, a comfortable external account position, weakening leading economic indicators, and a contraction in money supply as factors that "continue to support the case for monetary easing in the coming months." Mettis Global attributed the rally to easing geopolitical tensions and a sharp decline in global oil prices, which improved investor sentiment. What's Next Investors will watch closely for further developments in US-Iran talks and any impact on oil prices and regional stability. The SBP's next monetary policy decision will depend on how these external factors evolve, along with domestic economic data including inflation figures and flood damage assessments. Market participants are likely to continue monitoring geopolitical risks and global oil price movements for near-term direction.