Summary Pakistan stocks surged as the US-Iran ceasefire lifted global markets, sending KSE-100 up 8.15%, oil down, Asian shares higher, and the dollar retreating on relief optimism.
KARACHI (Dunya News) – Pakistan Stock Exchange (PSX) opened on a strong note, registering significant gains, as the US and Iran ceasefire agreement has fueled buying rally on Wednesday.
As the market opened, the KSE-100 index gained 12,362.38 points to jump to 164,035.83 points, marking a positive change of 8.15 percent compared to previous close of 151,673.45 points.
On global front, oil prices dived, stocks surged and the dollar was knocked back as a two-week Middle East ceasefire sparked a relief rally, fuelled by hopes that oil and gas flows through the Strait of Hormuz could resume.
The news capped weeks of market volatility and geopolitical upheaval after U.S. and Israeli strikes on Iran at the end of February pushed tensions to the brink, with Tehran effectively choking off the strategic waterway that typically carries about 20% of the world’s oil and gas.
US President Donald Trump on Tuesday agreed to a ceasefire with Iran, less than two hours before his deadline for Tehran to reopen the strait or face devastating attacks on its civilian infrastructure.
Market reaction was swift and dramatic, with U.S. crude futures down around 15% to $96.31 a barrel, while Brent futures also slid 13% to $95.36 per barrel.
S&P 500 futures jumped more than 2%, while European futures leapt more than 5%. The U.S. dollar fell broadly, having been the haven of choice during the tumult.
In Asia, Japan's Nikkei (.N225), opens new tab surged about 5% while South Korea's KOSPI (.KS11) rose 6%, triggering a brief halt in trading. That left the MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) up 4%.
