KARACHI: Pakistan’s stock market was halted on Wednesday after a sharp rally driven by geopolitical optimism pushed a key index up more than 5 percent, triggering an automatic suspension under exchange rules.
The benchmark KSE-30 index, comprising 30 highly liquid stocks and used as the exchange’s volatility gauge, rose 5.02 percent to 156,204.89 points, gaining 7,461.58 points from the previous close, prompting the Pakistan Stock Exchange to suspend trading across equity markets.
Trading was suspended at 12:03:45 p.m., with the market scheduled to reopen after a cooling-off period.
“Due to a 5 percent Increase in the KSE-30 index from the previous trading day close of the same, a Market Halt has been triggered as per PSX Regulations and all equity based markets have been suspended accordingly,” PSX said in a notice.
“Please note that as a result of the halt, all outstanding orders have been canceled automatically by the system,” it added.
According to an analyst, the market has been sensitive to developments in the Middle East, particularly since the escalation following US-Israeli strikes on Iran on Feb. 28 and Tehran’s retaliation, which disrupted energy infrastructure and shipping through the Strait of Hormuz.
“People are expecting US President Donald Trump to announce the end of war,” said Samiullah Tariq, head of research at Pakistan Kuwait Investment Company Ltd, adding that the trigger for the surge was a “geopolitical development.”
Trump said Tuesday US forces would end operations in Iran “very soon,” giving a timeline of two to three weeks while reiterating that his administration was pursuing talks with Iranian authorities while continuing its aerial campaign.
PSX trading resumed after a little more than an hour following the mandatory halt period.
