ISLAMABAD:
The Pakistan Stock Exchange (PSX) witnessed a historic surge on Tuesday, climbing nearly 5,900 points after US President Donald Trump announced a ceasefire between Israel and Iran.
The KSE-100 index jumped 5,878.15 points — a gain of 5.06% — reaching an intraday high of 122,045.62 from its previous close of 116,167.47.
The sudden boost reflects improved investor sentiment and eased global concerns following 12 days of intense military conflict in the Middle East.
Global markets also responded positively.
Stocks rallied worldwide, the US dollar weakened, and oil prices dropped nearly 5% — the lowest in two weeks — due to reduced fears of supply disruptions.
On Monday, PSX had seen panic selling amid US airstrikes on Iran’s nuclear sites and Tehran’s threat to close the Strait of Hormuz, losing over 3,800 points.
Market Temporarily Halted After Sharp Gain
Due to the sharp 5% rise in the KSE-30 index, PSX regulations triggered a market halt shortly before 11:30am.
Trading was paused for an hour and resumed at 12:31pm.
The PSX notice confirmed the halt was a standard regulatory response to sudden price movement.
This reflects strong investor reaction to geopolitical de-escalation in the region.
Ceasefire Announcement Boosts Confidence
President Trump announced the ceasefire through a late-night social media post.
He revealed that Iran would halt military operations at 4am GMT, with Israel expected to follow 12 hours later.
The Israeli government claimed it had achieved all military objectives and welcomed the truce.
However, Iran’s Foreign Minister stated that no official ceasefire agreement had been reached yet.
He added Tehran would not pursue further attacks if Israel stopped its “illegal aggression”.
The PSX rally indicates that markets have welcomed the possibility of de-escalation, at least in the short term.
