Summary The Pakistan Stock Exchange recorded a historic rally as a US-Iran ceasefire, reportedly brokered by Pakistan, boosted investor confidence.
KARACHI (Dunya News) – Pakistan’s stock market witnessed a historic surge on Wednesday as a Pakistan-brokered ceasefire between the United States and Iran sparked a powerful investor rally at the Pakistan Stock Exchange (PSX).
The benchmark KSE-100 Index closed at 165,811 points, registering its highest-ever single-day gain of 14,138 points, or 9.32%, amid renewed investor confidence.
Trading began on a strong note, with the index rising sharply at the opening bell. The bullish momentum intensified, pushing gains beyond 8% and triggering a temporary market halt at 9:37am in line with PSX regulations after the KSE-30 index rose by 5%.
Market activity resumed at 10:42am, with aggressive buying continuing throughout the session. The index later hit an intraday high of 165,924.13 before settling slightly lower by the close.
Analysts described the session as extraordinary, with one brokerage calling it “a short-seller’s nightmare and a buyer’s paradise.” The rally was driven by easing geopolitical tensions, falling oil prices, and improved investor sentiment.
The ceasefire, reportedly facilitated by Pakistan, led to a global relief rally. Equities surged across major markets in the United States, Europe, and Asia, while oil prices dropped sharply amid expectations of resumed flows through the Strait of Hormuz.
According to market experts, Pakistan’s diplomatic role in reducing tensions between United States and Iran triggered a rapid reversal in risk perception, unlocking the market’s upside potential.
Officials noted that continued de-escalation could further stabilise financial markets and reduce commodity prices. However, they cautioned that the ceasefire remains temporary, and any breakdown could lead to renewed volatility.
The focus now shifts to monetary policy, with the State Bank of Pakistan closely monitoring geopolitical developments and their economic implications.
Meanwhile, Shehbaz Sharif welcomed the ceasefire and invited delegations from both countries to Islamabad on April 10 for further negotiations aimed at reaching a lasting agreement.
The breakthrough followed discussions involving Donald Trump, who confirmed the two-week ceasefire after talks with Pakistani leadership, including Field Marshal Asim Munir.
Globally, markets reacted swiftly. Oil prices plunged, with US crude falling around 15% and Brent declining by 13%. Major equity indices also recorded strong gains, reflecting optimism over reduced geopolitical risks.
Despite the rally, analysts emphasised that investors remain cautious and are awaiting signs of a long-term resolution before making substantial commitments.
