The Pakistan Stock Exchange (PSX) experienced a remarkable rally on June 24, 2025, with the KSE-100 Index surging 6,479.11 points, or 5.58%, to close at 121,637.63. This significant gain, one of the largest single-day increases in recent months, was driven by renewed investor optimism following U.S. President Donald Trump’s announcement of a ceasefire between Iran and Israel.
The KSE-100 Index reached an intraday high of 122,725.21 and a low of 120,369.53, reflecting strong buying interest. Trading volume hit 236.9 million shares, with a total value of Rs20.6 billion, signalling robust activity across sectors. The rally marked a sharp recovery from Monday’s steep sell-off, when the index plummeted 3,856 points (3.21%) to 116,167.47 amid escalating geopolitical tensions.
Monday’s decline was fueled by fears of supply disruptions and high inflation following U.S. military actions in Iran, which intensified the Israel-Iran conflict. According to Topline’s market review, widespread risk aversion triggered panic selling. The ceasefire announcement alleviated these concerns, restoring confidence and driving broad-based buying on Tuesday.
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The Iran-Israel ceasefire, announced on June 23, 2025, eased fears of regional instability, a key factor influencing global and local markets. Investors responded positively, anticipating improved export outlooks and reduced inflationary pressures. The PSX’s performance underscores its sensitivity to geopolitical developments and the potential for rapid recovery when tensions subside.
While the ceasefire has sparked optimism, analysts caution that sustained market stability depends on continued de-escalation in the Middle East. Investors should monitor geopolitical updates and economic indicators, such as inflation and export data, to gauge future trends. For now, the PSX’s rally highlights the market’s resilience and responsiveness to global events.
