KSE-100 jumps over 6,500 points as PSX reacts positively to Trump’s ceasefire move to ease regional tensions

The Pakistan Stock Exchange (PSX) saw a strong rebound on Tuesday, with the benchmark KSE-100 Index jumping more than 6,500 points, or over 5%, following US President Donald Trump’s announcement of a ceasefire between Iran and Israel. 

According to the PSX website, the KSE-100 was hovering at 121,477.00 mark, up by 5309.53 points or 4.57% as of 01:30 pm.  

Key sectors, including automobile assemblers, commercial banks, oil and gas exploration companies, and power generation stocks, witnessed widespread buying activity. Major index stocks such as HUBCO, ARL, SSGC, PSO, MARI, OGDC, PPL, POL, UBL, and HBL were all in the green.

Earlier, trading at PSX was halted for one hour at 11:26 am after a 5% gain, with the market standing at 122,045.62, up by 5,878.15 from the previous close of 116,167.47 points.

“All TRE Certificate Holders are hereby informed that due to a 5% increase in the KSE-30 index from the previous trading day close of the index, a Market Halt has been triggered as per PSX Regulations and all equity and equity based markets have been suspended accordingly,” the PSX said in a notification.

The market opened at 12:31 pm and quickly resumed its upward trajectory, reaching the day’s highest level of 122,680.97, up by 6,513.45 points or 5.64% as of 12:35 pm.

Market analysts said that the ceasefire announcement and a significant drop in international oil prices are fueling the buying rally at the bourse as the investors believe the geopolitical situation will now stabilise. 

Today’s surge followed a sharp decline in the PSX on Monday, when escalating tensions after a US attack on Iran had led to a loss of nearly 3,900 points, with the KSE-100 closing at 116,167.47, down by 3,855.77 points or 3.21%.

US President Donald Trump said on Tuesday a ceasefire between Israel and Iran was now in place and asked both countries not to violate it, only hours after Iran launched waves of missiles, which Israel’s ambulance service said killed four people.

“The ceasefire is now in effect. Please do not violate it!” Trump said in a Truth social post.

Global shares rallied and the dollar extended declines on Tuesday after Trump said Iran and Israel had agreed to a ceasefire, sending oil prices into a deep dive as concerns over supply disruptions ebbed.

Risk assets rallied, with S&P 500 futures up 0.6% and Nasdaq futures 0.9% higher. EUROSTOXX 50 futures jumped 1.3% and FTSE futures rose 0.4%.

The MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 1.8% while Japan’s Nikkei rallied 1.4%.

China’s blue chips rose 1%, while Hong Kong’s Hang Seng index gained 1.7%.

Oil prices also fell over 3%, having already slid 9% on Monday when Iran made a token retaliation against a US base in Doha, which came to nothing and signalled it was done for now. 

With the immediate threat to the vital Strait of Hormuz shipping lane seemingly over, Brent crude futures were down $2.08, or 2.9%, at $69.40 a barrel around 0330 GMT, after earlier tumbling more than 4% and touching its lowest level since June 11. 

U.S. West Texas Intermediate crude declined $2.03, or 3.0%, to $66.48 per barrel, having dived 6% to its weakest level since June 9 earlier in the session.

News of the ceasefire saw the dollar extend an overnight retreat and slip 0.3% to 145.70 yen, having come off a six-week high of 148 yen overnight. The euro rose 0.2% to $1.1594 on Tuesday, having gained 0.5% overnight.

Spot gold was down 0.5% to $3,351.47 an ounce, as of 0257 GMT, after hitting its lowest level since June 11 earlier in the session. US gold futures slipped 0.9% to $3,365.30.