KARACHI: In the first session after the announcement of the federal budget for 2026-27, the Pakistan Stock Exchange (PSX) staged a strong recovery rally on Monday amid renewed buying interest across the board. Investor sentiment was boosted by reports of a peace agreement between the US and Iran, seen as a first step towards lasting peace in the Middle East, which helped propel the benchmark KSE-100 index above 177,000 points. Following the development, global oil prices resumed their decline, hitting an almost three-month low as hopes revived for the reopening of the Strait of Hormuz, easing supply concerns and reducing inflationary pressures on oil-importing countries such as Pakistan.