PSX soars past 155,000 mark as hopes of US-Iran de-escalation lift market

KSE-100 surges 6,768 points as banking, cement and energy sectors lead charge

KARACHI:

Trading halted at the Pakistan Stock Exchange (PSX) in a massive show of tranquillity on Wednesday as hopes of de-escalation in the Iran–US conflict brought investors back into a vibrant mood.

The KSE-100 index recorded a high of 157,347.18 and a low of 151,262.77, with some volatility emerging later part of the session. The benchmark ultimately closed at 155,511.57, jumping 6,768.25 points or 4.55%.

Equities surged sharply during the session, with buying activity broad-based across multiple sectors.

The PSX, in its official notice, confirmed that the market halt was triggered after the KSE-30 index rose 5% from the previous day’s close, activating the exchange’s circuit breaker mechanism.

Following this threshold breach, all equity markets were suspended at 12:03:45pm, and all outstanding orders were automatically cancelled.

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The benchmark KSE-100 index initially climbed to 153,615 points, marking a gain of 3.28%, and by 12:03pm it was hovering around 156,204.89 points, up 7,461.58 points or 5.02%. As trading resumed after the cooling-off period, the KSE-100 index closed at 155,511.57, jumping 6,768.25 points or 4.55%.

The temporary halt, triggered specifically by the KSE-30 index, underscored the PSX’s mechanisms to ensure orderly trading during periods of extreme market swings.

Investor sentiment remained robust during the session, with both retail and institutional participants driving momentum, particularly in the banking, cement, and energy sectors. The strong recovery reflects renewed optimism in the market, fuelled by easing geopolitical tensions and improving macroeconomic indicators.

Analysts, however, caution that external factors such as global commodity prices and regional risks could influence market trends in the near term, keeping a close eye on the sustainability of the rally.

KTrade Securities noted that the KSE-100 index staged a powerful rebound, closing at 155,511 points, up 6,768 points (+4.55% DoD), marking a sharp reversal after recent prolonged weakness. The session opened strong and maintained a firm upward trajectory throughout, with broad-based buying reflecting a decisive shift in sentiment.

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The rally was largely driven by improving global cues, as easing geopolitical tensions lifted risk appetite. Overnight developments, including conciliatory signals from both the US and Iran, triggered a sharp pullback in international oil prices, while global equities across the US and Asia closed in the green. This external tailwind set the stage for aggressive buying at the local bourse.

Market participation strengthened notably, with volumes rising to 420 million shares. The rally remained broad-based, with heavyweights across commercial banks, cement, fertiliser, and E&P sectors driving index performance, the report added.

On the macro front, the latest CPI print of 7.3%, coming in below expectations, further reinforced investor confidence by supporting the case for a stable monetary outlook. The combination of easing inflation and softer oil prices provided a strong base for sentiment recovery.

Looking ahead, market direction remains closely tied to geopolitical developments and oil price dynamics. Sustained softness in crude, particularly if Brent remains below the $100 mark, could further strengthen investor confidence and extend the ongoing recovery.

Near-term sentiment will also be shaped by upcoming global political signals, with the market likely to remain responsive to external triggers, KTrade added.