Pakistan stocks climb over 6,000 points amid Iran-Israel ceasefire

KARACHI: The Pakistan Stock Exchange climbed over 6,000 points, or 5.23 per cent, in a second-highest single day rise after US President Donald Trump announced that Iran and Israel had agreed to ceasefire, which proved fragile as the day progressed.

The benchmark KSE-100 Index rose 6,079.16 and closed at 122,246.63, after trading was halted for an hour as the KSE-30 Index rallied 5 per cent in the morning.

As far as the improved market sentiments are concerned, the reports of a ceasefire between Iran and Israel, which eased regional tensions and drove oil prices lower, fuelled aggressive buying, lifting the market sharply, Ismail Iqbal Securities stated.

On the other hand, another factor was the government announcement of withdrawing sales tax and duty exemptions on imported cotton and yarn, aiming to support local cotton farmers and revive the domestic textile sector, Al Habib Capital stated.  

“Investor sentiment surged after President Trump announced a ceasefire between Iran and Israel, lifting the Pakistan Stock Exchange,” Shaheryar Butt, CEO at Darson Securities said.

“It marks the second-highest single day increase on a closing basis in terms of points, with the index closing at 122,247 points level,” Arif Habib Limited stated.

FOREIGN RESERVES TO GET A BOOST

Pakistan is aiming to secure $3.3bn in two foreign loans — one a syndicated loan and the other a refinancing of commercial loans — from Chinese banks within the next few days. This will take foreign reserves held by the SBP above the$14bn mark in FY25, Arif Habib Limited, went on to add.

Riding on this wave of optimism, the KSE-100 index surged at the open, clocking in an astonishing 4,202-point jump from the previous close. The bullish momentum intensified as the session progressed, culminating in a historic moment — the KSE-30 index hit its upper circuit breaker, an exceptionally rare feat that electrified the market floor, Topline Securities added.

Meanwhile, the top contributors to the Pakistan Stock Exchange’s rise included LUCK, ENGROH, UBL, PPL, and OGDC, which collectively added a remarkable 1,795 points.

On the trading front, PSO (Rs2.4bn), OGDC (Rs1.98bn), PPL (Rs1.62bn), LUCK (Rs .60bn), and DGKC (Rs1.49bn) dominated the charts in terms of traded value, signalling strong interest in key blue chip and mid-cap names.

Market activity remained vibrant, with the total trading volumes clocking at a solid 801 million shares, and overall value reaching Rs37.5 billion. WTL emerged as the volume leader with 65 million shares changing hands.