The Pakistan Stock Exchange (PSX) witnessed a sharp rally on Wednesday as the benchmark KSE-100 index surged by 13,445.81 points, or 8.86%, closing at 165,119.26 points from the previous session’s 151,673.45 points.
The market experienced a brief trading halt minutes after opening due to the rapid surge, before resuming at 10:42am amid heightened investor activity. The rally was driven by improved market sentiment following news of a two-week ceasefire between the United States and Iran, which eased geopolitical tensions linked to the ongoing regional conflict.
Market analysts attributed the bullish trend to expectations of reduced geopolitical risk and stabilising global conditions. The decline in international oil prices also contributed to optimism, easing concerns over inflationary pressures and external account challenges.
According to market experts, the easing of tensions and prospects of diplomatic engagement have encouraged investors to re-enter the market, leading to broad-based buying across multiple sectors. The development has been seen as a key trigger for restoring confidence after recent volatility in both local and global markets.
With diplomatic efforts continuing and Islamabad expected to host further discussions, investors are closely watching developments that could shape the trajectory of the market in the coming sessions.