Pakistan’s benchmark index soared on Wednesday as the PSX surged after news of a ceasefire became the dominant market story, lifting investor confidence and triggering a broad-based rally.
The KSE-100 index climbed to 164,035.83 points, gaining 12,362.38 points, or 8.15%, from the previous close of 151,673.45. The exchange temporarily halted trading after the KSE-30 index rose 5%, and the market will resume at 10:42 am.
Investor sentiment improved sharply after news of a ceasefire between the United States and Iran, which followed Pakistan’s diplomatic efforts.
US President Donald Trump agreed to a two-week ceasefire with Iran less than two hours before a deadline linked to the Strait of Hormuz. Iran’s Foreign Minister Abbas Araqchi said Tehran would stop counter-attacks and allow safe passage through the waterway if attacks against it ended.
Prime Minister Shehbaz Sharif also announced that he had invited the leadership of both nations to Islamabad on April 10 for further talks aimed at reaching a final agreement.
Why the Pakistan Stock Exchange rally gained momentum
The market reaction was not driven solely by diplomacy. Oil prices fell 15%, which added to the positive mood across trading floors.
Lower oil prices can ease concerns around imported inflation and pressure on Pakistan’s external account. As a result, investors moved quickly to rebuild positions, especially after a sharp 20% to 22% market correction.
This combination of easing geopolitical tensions and softer energy prices helped reverse recent caution. In effect, traders began pricing in a lower risk environment and a possible return to market normalisation.
KSE-100 index jumps as bulls return
The rebound marked a decisive shift in sentiment. Investors shifted the market from a risk-off stance into a strong rally in response to a long-awaited trigger.
With Islamabad expected to host talks on April 10, market participants appeared to view the development as a potential turning point. That helped fuel buying across the board and pushed the equity market firmly in favour of the bulls.
Read: Trump Calls Off Iran Attack, Says Conflict Nears Resolution
The next phase for the market will likely depend on whether the ceasefire holds and whether the planned talks in Islamabad lead to broader de-escalation.
For now, the Pakistan Stock Exchange rally reflects renewed optimism, reduced geopolitical fears, and relief from falling oil prices, all of which combined to lift the market in a single, powerful session.
