PESHAWAR – The iran-israel ceasefire triggered a record surge at the Pakistan Stock Exchange (PSX) on Tuesday. The benchmark KSE-100 index jumped by 5,800 points, closing at 122,000 — a 5 percent rise in a single session.
As per PSX regulations, the market paused trading after hitting the upper circuit breaker. The halt lasted 45 minutes to stabilise the sudden activity.
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The rally followed the iran-israel ceasefire announcement made by former US President Donald Trump. The agreement calmed tensions in the Middle East and caused a sharp decline in international oil prices. This drop eased inflationary concerns and boosted market confidence worldwide.
Investor sentiment in Pakistan turned bullish. Traders responded quickly, pushing demand for shares across various sectors. Markets in India and Japan also recorded strong gains in response to the ceasefire and falling energy prices.
Market analyst Shehryar Butt told BBC that the iran-israel ceasefire brought immediate relief to investors. “The regional tension had slowed market activity, but the truce improved confidence. Lower oil prices gave buyers a reason to re-enter the market,” he said.
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Butt added that Pakistan’s recent federal budget also played a role. The government introduced tax incentives and structural reforms that encouraged investment. “This combination of internal policy and external stability created the perfect setup for today’s rally,” he explained.
While earlier uncertainty caused short-term pressure on the market, current conditions appear favourable. Analysts believe if the trend holds, the PSX may continue to climb in the coming days.
The iran-israel ceasefire has become a critical factor in driving optimism across emerging markets. For Pakistan, it has delivered immediate gains and set the stage for further investor engagement.
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