PSX rally boosted by Iran-Israel ceasefire, KSE-100 climbs 5.06%

Karachi: The Pakistan Stock Exchange (PSX) witnessed a dramatic surge on Tuesday, prompting a temporary one-hour trading halt after automatic circuit breakers were triggered by an extraordinary rally.

The benchmark KSE-100 Index soared by 5,878 points, closing at a record 122,045.62—an increase of 5.06%—marking one of the most significant single-day gains in recent months.

Trading was paused as per market regulations after the KSE-30 Index surged more than 5% without interruption. These circuit breakers are designed to prevent excessive volatility and allow a cooling-off period when sharp movements occur.

Investor confidence was buoyed by easing geopolitical tensions, particularly the ceasefire between Iran and Israel, which helped drive strong buying across the board. At the start of trading, the KSE-100 Index jumped 4,332 points within minutes, reclaiming four key resistance levels in one swift move.

Throughout the day, market momentum remained strong, with a total of 146.67 million shares traded. The index touched an intraday high of 122,046.03 points and a low of 120,369.53 points.

Senior market analysts described the rally as one of the most remarkable recoveries in recent history, fueled by optimism around potential economic stability and ongoing structural reforms. Key sectors across the board witnessed strong buying interest, contributing to the rally’s breadth and depth.

Additionally, currency brokers reported a significant breakthrough in addressing the country’s long-standing circular debt issue in the power sector. The government is expected to secure a low-cost loan of Rs1,275 billion from local banks, a move anticipated to further stabilize investor sentiment.

The KSE-100 Index has now posted a 56% gain over the past year and a 6.01% increase year-to-date (YTD), reflecting growing optimism in the market’s long-term trajectory. Trading resumed after the mandatory one-hour halt, with expectations of sustained momentum in the coming sessions.