The Pakistan Stock Exchange surges sharply on improved investor sentiment after US President Donald Trump signalled that the conflict with Iran could end within weeks. A wider rally in global equities also supported the strong move in local shares.
The benchmark KSE-100 index climbed 7,461.58 points, or 5.02%, to 156,204.89 points from the previous close of 148,743.31. During intraday trading, the index rose by about 7,462 points, indicating strong bullish momentum across the market.
Trading at the Pakistan Stock Exchange was temporarily halted after the KSE-30 index stayed above the 5% threshold for five consecutive minutes. That triggered the market’s automatic suspension mechanism, with trading set to resume at 1:09 pm.
The sharp move reflected investor optimism after Trump said the United States could leave Iran “within two weeks, maybe two weeks, maybe three.” US Secretary of State Marco Rubio also said Washington could hold direct talks with Iran at some point, signalling a possible diplomatic opening.
Global Relief Rally Adds to PSX Gains
Global markets also moved higher as concerns over the Iran conflict appeared to ease. China and Hong Kong stocks joined the broader relief rally, while the yuan strengthened against the dollar after Trump’s remarks helped calm markets.
Japan’s Nikkei 225 jumped 4%, while benchmarks in Taiwan and Seoul also posted gains. The broader global rebound bolstered Pakistan’s equity market as investors responded to improving risk appetite.
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The temporary halt at the PSX underscored the rally’s scale rather than a market disruption. Such suspensions are designed to pause trading when benchmark thresholds are crossed and to give the market time to absorb sharp moves. In this case, the pause came amid broad-based gains.
Investors will now watch whether diplomatic signals continue to support confidence in the days ahead. For now, the rally shows how quickly geopolitical developments can reshape market sentiment in Pakistan and beyond.