Pakistan stocks see strong recovery as Iran-Israel ceasefire reports boost investor sentiment

A stockbroker walks past share prices on a financial market board during a trading session at the Pakistan Stock Exchange (PSX) in Karachi, Pakistan, on April 9, 2025. (AFP/File)
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Updated 24 June 2025
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Pakistan stocks see strong recovery as Iran-Israel ceasefire reports boost investor sentiment

  • US President Donald Trump said Monday that Israel and Iran had agreed to a ‘complete’ ceasefire to be phased in over 24 hours
  • Analyst says the momentum is likely to continue, with valuations still shy of a long-term mean and due to market-friendly budget

ISLAMABAD: The Pakistan Stock Exchange (PSX) on Tuesday witnessed a strong recovery amid a reported ceasefire between Israel and Iran, traders and analysts said.

On Monday, United States (US) President Donald Trump said on social media that Israel and Iran had agreed to a “complete and total ceasefire” to be phased in over 24 hours.

The benchmark KSE-100 index surged by 6,079 points, or 5.23 percent, to close at 122,246 points on Tuesday afternoon, compared to the previous day’s close of 116,167 points.

“Stocks closed near all-time high after Iran, Israel agreed to a ceasefire receding fears of escalation in the Middle East tensions,” Ahsan Mehanti of Arif Habib Corporation told Arab News.

“Upbeat economic data on cement sales for Jul-May’25, bull run in global equities and receding fears over high inflation, impact on exports for supply disruptions over Middle East conflict played a catalyst role in the record bullish close.”

Raza Jafri, head of research at Intermarket Securities Ltd., attributed the momentum to reduction in international oil prices along with settling regional tensions.

In volatile trading on Tuesday, crude futures slumped more than five percent after Trump’s declaration of the Iran-Israel ceasefire.

“With valuations still shy of a long-term mean and Pakistan having recently unveiled a market-friendly budget, bullish momentum is expected to continue,” Jafri added.

On Monday, Pakistan’s stocks and currency markets had tumbled as investors reacted to the US foray into the Israel-Iran conflict a day earlier.

Monday’s 3.2 percent fall to 116,167 points was the worst since May 8, when the index had plunged 5.9 percent day-on-day during the India-Pakistan military standoff.


Four suspected militant commanders killed in security operation in northwest Pakistan

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Four suspected militant commanders killed in security operation in northwest Pakistan

  • Police say joint raid targeted Pakistan Taliban faction in Bannu district
  • Operation comes amid surge in militant attacks blamed on Afghanistan-based groups

ISLAMABAD: Four suspected militant commanders were killed in a joint operation by police and security forces in Pakistan’s northwestern Khyber Pakhtunkhwa province, authorities said on Monday, as security forces intensify operations amid a surge in militant attacks in the region.

The operation, conducted in the Bannu district, targeted commanders belonging to a faction of the Tehreek-e-Taliban Pakistan (TTP), also known as the Pakistani Taliban, led by Hafiz Gul Bahadur, police said.

The four suspects were allegedly involved in multiple attacks, including the killing of an assistant commissioner in North Waziristan district, as well as facilitating and recruiting militants, carrying out targeted killings, attacking police checkpoints and stations, and engaging in kidnappings for ransom, according to police. 

Bannu and neighboring districts have seen repeated militant violence since the TTP ended a fragile ceasefire with the Pakistani state in late 2022. The region lies close to the Afghan border and has long been a focal point of Pakistan’s counterinsurgency operations.

“This is a clear message for anti-state elements that there is no safe haven for terrorists in this country,” Deputy Inspector General of Police for the Bannu region, Sajjad Khan, said. “They will not be allowed to hide anywhere. Police and security forces are fully committed to countering terrorism.”

“Anti-state elements will be targeted one by one and completely eliminated. All possible measures will continue to ensure the safety of the public,” he added.

The operation follows an overnight militant attack last week on a police checkpoint in Bannu, in which five police officers were injured after security forces repelled the assault.

Pakistan has accused Afghanistan’s Taliban-led government of allowing militant groups such as the TTP to operate from Afghan territory, allegations Kabul denies. Afghan officials say Pakistan must address its own internal security challenges. The accusations have contributed to strained relations between the two neighbors, including periodic border clashes over the past year.

Pakistan has seen a sharp rise in militant violence over the past two years, with security officials attributing much of the renewed insurgency to TTP fighters allegedly operating from sanctuaries across the border.