The Pakistan Stock Exchange witnessed a strong rally at the start of trading on Wednesday, with the benchmark KSE-100 Index soaring by 12,362 points, or 8.5 percent, to reach a record 164,035 points in Karachi.
The sharp surge prompted a temporary suspension of trading for one hour after the index crossed the 5 percent threshold, in accordance with market regulations aimed at curbing excessive volatility.
Market analysts attributed the bullish momentum to renewed investor confidence following a major geopolitical development, as Donald Trump announced a two-week ceasefire with Iran.
The announcement came shortly before a deadline set by Washington for Tehran to reopen the Strait of Hormuz, amid heightened tensions and threats of potential military action targeting civilian infrastructure.
According to reports, Iran has indicated that talks between the two countries are expected to begin on Friday in Islamabad, with Pakistan playing a mediating role in facilitating the ceasefire. However, the United States has yet to formally confirm in-person negotiations, stating that discussions are still underway.
President Trump said Iran had presented a 10-point proposal, describing it as a “workable basis” for negotiations. He expressed optimism that an agreement could be finalized within the two-week ceasefire window.
Meanwhile, strong buying activity was observed across key sectors at the PSX, reflecting positive market sentiment driven by easing geopolitical tensions and expectations of regional stability.
