The Pakistan Stock Exchange (PSX) surged nearly 5,900 points as markets rallied on the news of a ceasefire between Iran and Israel. The KSE‑100 index jumped about 4.9%, crossing the 122,000‑point mark before pausing briefly due to circuit‑breaker rules. Traders attributed the rally to renewed investor confidence, as de‑escalation in the Middle East reduced geopolitical risk and eased oil price pressures
This bullish trend followed former U.S. President Trump’s announcement that the ceasefire was officially in effect, triggering a positive mood across global markets. Investors in Karachi welcomed the news, seeing fewer risks to trade routes and energy security.
Sector-wise, bank, oil, and fertilizer stocks led the advance, capitalizing on improved market sentiment. Analysts pointed out that Pakistan’s close ties to global energy and financial systems mean it benefits disproportionately from regional calm. The surge not only reflects immediate investor optimism but also highlights the underlying fragility of markets sensitive to geopolitical shocks.
Still, some caution persists. Investors remain watchful of potential setbacks; a fragile truce could collapse and send markets into reverse. Yet, for now, economic cheer has taken precedence. The rally represents more than numbers—it reflects collective relief that one source of regional tension has dimmed, for the moment.