KARACHI: The Pakistan Stock Exchange (PSX) witnessed a massive rally on Wednesday, with the benchmark KSE-100 index surging by more than 13,000 points following a pause in hostilities between the United States and Iran.
The KSE-100 index climbed by 13,883.84 points, or 9.15%, reaching 165,557.29 compared to the previous close of 151,673.45. Trading was briefly suspended shortly after the market opened due to the sharp surge, before resuming later in the morning.
Market sentiment improved significantly after U.S. President Donald Trump agreed to a two-week ceasefire with Iran, following diplomatic intervention led by Pakistan.
Iranian Foreign Minister Abbas Araghchi stated that Tehran would halt retaliatory actions and ensure safe passage through the Strait of Hormuz, provided attacks against the country cease.
Prime Minister Shehbaz Sharif also announced that leaders from both sides have been invited to Islamabad on April 10 to advance negotiations toward a lasting settlement.
Market analysts attributed the sharp rebound to renewed optimism among investors. Ahfaz Mustafa, CEO of Ismail Iqbal Securities, noted that the ceasefire facilitated by Pakistan has significantly boosted market confidence.
He highlighted that global oil prices have dropped by around 15%, easing economic concerns and helping markets recover after a recent correction of over 20%.
Meanwhile, Maaz Mulla of Topline Securities said the truce triggered a strong wave of buying activity, as investors quickly adjusted their outlook in response to reduced geopolitical risks.
He added that falling oil prices have alleviated fears of rising inflation and external account pressures, further encouraging broad-based participation across the market.
Overall, analysts believe the combination of diplomatic de-escalation and improving macroeconomic indicators has provided the long-awaited catalyst for a strong bullish trend at the PSX.
