PSX surges as ceasefire boosts investor confidence

KARACHI: (Web Desk) – Strong bullish activity was recorded at the Pakistan Stock Exchange after the United States and Iran agreed to a temporary two-week ceasefire, reportedly facilitated through Pakistan’s diplomatic efforts.

The benchmark KSE-100 Index surged by more than 12,000 points within minutes of trading on Wednesday, reflecting a sharp improvement in investor sentiment. By 9:37am, the index had climbed to 164,035.83, marking a gain of over 12,300 points or 8.15 percent.

PSX soars over 12,000 points as Pakistan mediates Middle East tensions

Following the rapid increase, trading was briefly halted in line with PSX regulations. The suspension was triggered after the KSE-30 Index rose more than 5 percent compared to the previous session, leading to a temporary pause in all equity market activity. Trading was scheduled to resume at 10:42am.

Buying interest was seen across major sectors, including cement, banking, oil and gas exploration, oil marketing companies, and power generation. Key stocks such as ARL, HUBCO, MARI, OGDC, PPL, POL, MCB, HBL, and UBL all traded in positive territory, driving the index higher.

Analysts noted that Pakistan’s diplomatic role in easing tensions between Washington and Tehran played a crucial part in reversing market sentiment. The ceasefire sparked a relief rally, as investors quickly adjusted risk perceptions and responded to expectations of improved regional stability.

The development followed discussions involving former US President Donald Trump, Prime Minister Shehbaz Sharif, and Field Marshal Asim Munir. Trump confirmed the ceasefire agreement shortly before a deadline linked to escalating tensions in the region.

Prime Minister Shehbaz Sharif welcomed the agreement and invited delegations from both countries to Islamabad on April 10, 2026, to continue negotiations toward a long-term resolution.

A day earlier, the PSX had experienced volatile trading, with the KSE-100 Index fluctuating widely before closing higher, supported by late-session buying fueled by optimism surrounding ceasefire developments.