PSX gains close to 14,000 points amid investor glee over US-Iran ceasefire

The Pakistan Stock Exchange (PSX) experienced its highest single-day rally in absolute terms on Wednesday, with the benchmark KSE-100 index surging by nearly 14,000 points, or 9.18 percent, to 165,598.92. This significant gain was driven by investor optimism following positive developments of a ceasefire between the United States and Iran. The rally pushed the index up by 13,925.47 points from its previous close, temporarily suspending trading earlier in the day due to the massive surge. Analysts anticipate that this de-escalation in the Middle East will stabilize market sentiment, reduce oil price pressures, and restore investor confidence, potentially leading to increased inflows and a recovery for the PSX. This comes after substantial single-day losses and high volatility experienced since the US-Israel war on Iran began, including a steep plunge after the assassination of Iran’s supreme leader.