The benchmark index at the Pakistan Stock Exchange saw a sharp surge at the start of trading on Wednesday, as investor sentiment turned strongly positive following reports of a temporary ceasefire between the US and Iran.
Within minutes of the opening bell, the KSE-100 Index jumped more than 12,000 points, reflecting aggressive buying across the market. By 9:37am, the index had climbed to 164,035.83, up 12,362.38 points, or 8.15 percent from the previous close.
The steep rise triggered an automatic market halt under exchange rules, after the KSE-30 index crossed the 5 percent threshold. Trading in all equity markets was temporarily suspended before resuming later at 10:42am.
Broad-based rally across sectors
After trading resumed, buying remained strong across key sectors including cement, banking, oil and gas exploration, oil marketing companies and power generation. Major index movers such as ARL, HUBCO, MARI, OGDC, PPL, POL, MCB, HBL and UBL all traded in positive territory, helping maintain upward momentum.
Market activity was also supported by strong volumes, with more than 82 million shares changing hands early in the session. The index moved within a day range of 163,647.16 to 164,594.38.
Among the most active stocks, K-Electric, Bank of Punjab, WorldCall Telecom, Cnergyico and Hascol Petroleum recorded notable gains, each rising between around 5 percent and nearly 10 percent. In contrast, a few stocks such as Feroze 1888 Mills, Service Industries and Sitara Textile Mills faced declines during the session.
Sentiment driven by geopolitical relief
Analysts linked the rally to easing geopolitical tensions after the US agreed to a two-week ceasefire with Iran, reportedly following diplomatic efforts involving Pakistan.
Market participants said the development reduced immediate risks tied to oil supply disruptions, especially through the Strait of Hormuz, which is a key global energy route.
A brokerage house described the session as highly favourable for buyers, noting that falling oil prices and recent progress on debt repayments had created a supportive backdrop for equities.
Another market analyst said the ceasefire had triggered a sharp reversal in investor sentiment, with risk premiums unwinding quickly and revealing the market’s upside potential.
Global markets also rebound
The positive mood was not limited to Pakistan. Global markets rallied after the ceasefire announcement, with oil prices falling sharply and equities rising across regions.
US crude prices dropped significantly, while major equity futures in the US and Europe posted strong gains. Asian markets also reacted positively, with indices in Japan and South Korea jumping sharply, even triggering a temporary halt in Seoul.
Despite the strong rally, analysts said investors would remain cautious and watch whether the ceasefire leads to a more lasting resolution before making long-term commitments.
Read next: PSX opens lower as heavy selling hits key sectors, trims losses later
