Around noon, the KSE-100 Index was trading at 173,150.11 points, showing an increase of 1,424.82 points or 0.83 percent.
Strong investor interest was seen in major sectors including automobile assemblers, cement, oil and gas exploration companies, oil marketing firms, and power generation companies.
Index-heavy shares including Hubco, Mari Energies, Pakistan Oilfields Limited, Habib Bank, and National Bank traded in positive territory throughout the session.
Earlier in the week, the Pakistan Stock Exchange had also recorded a strong recovery on Monday amid positive expectations regarding ongoing negotiations between the United States and Iran, easing global oil prices, and aggressive buying ahead of the Eid holidays.
At the close of trading on Monday, the KSE-100 Index had surged by 3,881.05 points or 2.31 percent to settle at 171,725.29 points.
Meanwhile, global stock markets also maintained a positive trend. On Friday, international equities reached record highs, while oil prices were heading toward their biggest weekly decline in nearly two months.
According to Reuters, sources claimed that the United States and Iran had agreed to extend the ceasefire and ease shipping restrictions in the Strait of Hormuz.
However, final approval from US President Donald Trump is still pending, while Iranian state media has not yet officially confirmed the agreement.
Global markets also remained cautiously optimistic, while growing enthusiasm around artificial intelligence supported shares of chip-making companies worldwide. As a result, stock markets in Tokyo and Seoul recorded gains of nearly 2 percent.
