KARACHI: Pakistan Stock Exchange witnessed a historic rally on Wednesday after Pakistan successfully helped broker a two-week ceasefire between Iran and the United States. Investor confidence surged as the benchmark KSE-100 Index climbed more than 9 percent and closed at a record 165,811 points.
The KSE-100 Index gained 14,138 points or 9.32 percent during the trading session, making it the biggest single-day increase in Pakistan Stock Exchange history. Strong buying pressure appeared from the opening bell as investors reacted positively to the Iran-US ceasefire and lower global oil prices.
The rally was so strong that trading at the Pakistan Stock Exchange was temporarily halted at 9:37am after the KSE-30 Index rose more than 5 percent. Trading resumed at 10:42am and the market continued to move higher throughout the day.
Analysts said the Pakistan-brokered ceasefire created a major shift in investor sentiment. The agreement between the United States and Iran reduced fears of a wider Middle East war and improved expectations for Pakistan’s economy.
Prime Minister Shehbaz Sharif welcomed the ceasefire and invited both countries to Islamabad for peace talks on April 10. US President Donald Trump also confirmed the two-week truce with Iran after discussions linked to the Strait of Hormuz.
The easing of tensions pushed global oil prices sharply lower. Brent crude dropped to around 95 dollars per barrel, while US crude fell nearly 15 percent. Since Pakistan imports large amounts of oil, lower prices are expected to reduce inflation and ease pressure on the Pakistani rupee.
According to stock market experts, sectors such as banking, cement, technology and energy led the PSX rally. They believe the KSE-100 Index could continue to rise if the Iran-US ceasefire remains in place and broader peace talks succeed.
The Pakistani rupee also posted a slight gain against the US dollar, closing at 279.05 in the interbank market. Trading volume at the PSX jumped sharply, with more than 1.24 billion shares changing hands.
Market experts warned that any breakdown in the ceasefire or new tensions in the Middle East could quickly trigger fresh volatility in the stock market.
