The Pakistan Stock Exchange (PSX) witnessed a historic surge on Wednesday as investor confidence rebounded sharply following reports of a ceasefire between the United States and Iran.
Read More: PSX stays bullish, gains more 465 points
The benchmark KSE-100 Index jumped by more than 12,000 points during intraday trading, rising 12,362.38 points, or 8.15 percent, to reach 164,035.83 by 9:37am. The rally prompted a temporary suspension of trading in line with market regulations designed to manage extreme volatility.
The surge marks the largest single-day gain in absolute terms in the history of the Pakistan Stock Exchange, surpassing the previous record increase of 10,123 points recorded on May 12, 2025.
Market participants attributed the strong upward momentum to easing geopolitical tensions after a ceasefire understanding between Washington and Tehran. The development reduced fears of a prolonged conflict in the Middle East, which had previously weighed heavily on investor sentiment and triggered sharp declines in global and local markets.
A day earlier, the market had closed with a modest gain of 465.64 points amid heightened uncertainty, as investors remained cautious ahead of a US deadline related to negotiations with Iran.
Analysts said the ceasefire could play a decisive role in shaping the short-term direction of the market. Reduced geopolitical risk is expected to stabilize oil prices, ease inflationary concerns, and improve the outlook for equities.
The PSX had experienced significant volatility in recent weeks, including one of its steepest declines on record when it lost over 16,000 points in a single day amid escalating tensions linked to Iran.
Read More: PSX loses over 3,500 points over geopolitical tensions
Experts believe that sustained de-escalation in the region could restore investor confidence, attract foreign inflows, and support a broader recovery in Pakistan’s financial markets.