Bullish momentum was observed at the Pakistan Stock Exchange (PSX) after the US and Iran agreed to a two-week ceasefire amid Pakistan’s mediation efforts. The benchmark KSE-100 Index gained nearly 12,300 points during the trading session on Wednesday.
At 11:44am, the benchmark index was hovering at 163,953.48, up by 12,280.03 points or 8.10%.
The market opened on a strong note and hit 164,035.83, up by 12,362.38 points or 8.15%. Following the jump, a market halt was triggered at 9:37am.
“All TRE Certificate Holders are hereby informed that due to a 5% increase in the KSE-30 index from the previous trading day’s close of the same, a market halt has been triggered as per PSX Regulations, and all equity-based markets have been suspended accordingly,” read the notice.
The market opened at 10:42am.
Across the board buying interest was observed in key sectors, including cement, commercial banks, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including ARL, HUBCO, MARI, OGDC, PPL, POL, MCB, HBL and UBL, traded in the green.
“Today was a short-seller’s nightmare and a buyer’s paradise,” said Behtari Capital on Wednesday.
“While the ceasefire is provisional, the combination of debt repayment success and lower oil prices has created a strong floor for the index,” it added.
Meanwhile, Waqas Ghani, Head of Research at JS Global, said that Pakistan’s diplomatic efforts to ease United States–Iran tensions triggered a sharp sentiment reversal at the PSX, with a peace-driven rally highlighting both the rapid unwinding of risk premiums and the market’s underlying upside potential.
“Going forward, sustained de-escalation and/or a formal settlement could trigger a further correction in commodities and a broad based recovery across financial markets,” said Arif Habib Limited (AHL) in a note.
The focus now turns to monetary policy, with the SBP closely monitoring developments on the geopolitical front and their implications for the economy.
“While secondary market yields have already priced in a 100-150bps hike, sustained easing of geopolitical tensions and the absence of major external shocks could provide room for the SBP to adopt a more accommodative stance.
“That said, risks remain: any breach of the two-week ceasefire or setbacks in achieving a broader resolution could swiftly trigger renewed volatility,” it added.
US President Donald Trump, following talks with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, said on Tuesday that he had agreed to a two-week ceasefire with Iran, less than two hours before his deadline for Tehran to reopen the Strait of Hormuz or face widespread attacks on its civilian infrastructure.
“This will be a double-sided CEASEFIRE!” Trump wrote on his Truth Social platform. “The reason for doing so is that we have already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East.”
Prime Minister Shehbaz Sharif welcomed the ceasefire and invited delegations from the US and Iran to Islamabad on Friday, 10th April 2026, to further negotiate for a conclusive agreement to settle all disputes.
On Tuesday, PSX witnessed another volatile trading session with the benchmark KSE-100 Index moving within a wide range before closing in positive territory, as late-session buying driven by optimism over ceasefire developments supported investor sentiment.
The benchmark KSE-100 Index settled at 151,673.46 points, posting a gain of 465.64 points or 0.31%.
Internationally, oil prices dived, stocks surged and the dollar was knocked back on Wednesday as a two-week Middle East ceasefire sparked a relief rally, fuelled by hopes that oil and gas flows through the Strait of Hormuz could resume.
The news capped weeks of market volatility and geopolitical upheaval after US and Israeli strikes on Iran at the end of February pushed tensions to the brink, with Tehran effectively choking off the strategic waterway that typically carries about 20% of the world’s oil and gas.
US President Donald Trump on Tuesday agreed to a ceasefire with Iran, less than two hours before his deadline for Tehran to reopen the strait or face devastating attacks on its civilian infrastructure. Market reaction was swift and dramatic, with US crude futures down around 15% to $96.31 a barrel, while Brent futures also slid 13% to $95.36 per barrel.
S&P 500 futures jumped more than 2%, while European futures leapt more than 5%.
In Asia, Japan’s Nikkei surged about 5% while South Korea’s KOSPI rose 6%, triggering a brief halt in trading.
That left the MSCI’s broadest index of Asia-Pacific shares outside Japan up 4%. Beyond the immediate relief, investors remain keen to see whether the ceasefire leads to a broader resolution before placing major bets.
This is an intraday update
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