Pakistan-brokered ceasefire ignites historic rally, KSE-100 up over 12,000 points

Bullish momentum was observed at the Pakistan Stock Exchange (PSX) after the US and Iran agreed to a two-week ceasefire amid Pakistan’s mediation efforts. The benchmark KSE-100 Index gained over 12,000 points during the opening minutes of trading on Wednesday. At 9:37am, the benchmark index was hovering at 164,035.83, up by 12,362.38 points or 8.15%. Following the jump, a market halt was triggered at 9:37am. “All TRE Certificate Holders are hereby informed that due to a 5% increase in the KSE-30 index from the previous trading day’s close of the same, a market halt has been triggered as per PSX Regulations, and all equity-based markets have been suspended accordingly,” read the notice. The market will open at 10:42am. Across-the-board buying interest was observed in key sectors, including cement, commercial banks, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including ARL, HUBCO, MARI, OGDC, PPL, POL, MCB, HBL and UBL, traded in the green. “Today was a short-seller’s nightmare and a buyer’s paradise,” said Behtari Capital on Wednesday. “While the ceasefire is provisional, the combination of debt repayment success and lower oil prices has created a strong floor for the index,” it added. US President Donald Trump, following talks with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, said on Tuesday that he had agreed to a two-week ceasefire with Iran, less than two hours before his deadline for Tehran to reopen the Strait of Hormuz or face widespread attacks on its civilian infrastructure.