TLDR:
📈: KSE-100 Index rose 6,557.74 points (5.65%) to hit 122,725.21
🛢️: Oil price drop and Iran-Israel ceasefire restore investor confidence
🔒: Trading halted temporarily after KSE-30 hit 5% upper limit
💬: Trump announces 12-hour ceasefire; hints at end of war
📉: Market had plunged by 3.21% the day before
KARACHI (The Thursday Times) — The Pakistan Stock Exchange (PSX) witnessed a robust recovery on Tuesday as news of a ceasefire between Iran and Israel, coupled with a steep decline in global oil prices, fuelled investor optimism and reignited bullish sentiment across the bourse.
The benchmark KSE-100 Index surged by an impressive 6,557.74 points, or 5.65%, climbing to an intraday high of 122,725.21. The index had earlier touched a low of 120,369.53 — still up by 4,202.06 points, or 3.61% — reflecting sustained upward momentum throughout the trading session.
The sharp rally came in the wake of a volatile start to the week, following Monday’s steep losses when the KSE-100 shed 3,855.77 points (3.21%) to close at 116,167.47 amid fears of prolonged conflict in the Middle East.
Ahfaz Mustafa, CEO of Ismail Iqbal Securities, attributed Tuesday’s rebound to the ceasefire and falling oil prices. “The de-escalation in the Middle East and the resulting drop in oil prices have reassured investors. The market is breathing again, and confidence is returning,” he remarked.
Investor enthusiasm was so pronounced that the KSE-30 Index hit its upper limit of 5%, prompting a mandatory one-hour trading halt as per PSX regulations. Trading resumed smoothly at 12:31pm.
The positive turn in regional geopolitics was confirmed late Monday by former US President Donald Trump, who announced a temporary end to hostilities between Iran and Israel via his social media platform, Truth Social.
“It has been fully agreed by and between Israel and Iran that there will be a Complete and Total CEASEFIRE… for 12 hours, at which point the War will be considered, ENDED!” Trump posted. He further expressed optimism, stating, “Congratulations world—it’s time for peace,” and added that Iran had “gotten it all out of their ‘system’.”
Trump’s earlier statements suggested he did not expect further retaliation from Tehran following its missile strike on a US military base in Qatar — an act that had rattled global markets and energy prices only a day earlier.
Commenting on the market’s performance, Mohammed Sohail, CEO of Topline Securities, noted: “Ceasefire news and institutional buying are the twin drivers helping the market recover Monday’s losses. There is renewed hope that we may avoid a drawn-out conflict.”
Tuesday’s rally was broad-based, driven by heavyweight sectors such as banking, energy, and fertilisers, all of which saw strong inflows from both local and foreign investors. Analysts now suggest the market may continue its upward trajectory in the short term if geopolitical tensions remain subdued and macroeconomic indicators stay supportive.
