KARACHI: Pakistan’s stock market surged on Wednesday, triggering a temporary trading halt after a key index jumped more than 5 percent, as investor sentiment rebounded sharply following a ceasefire between the United States, Israel and Iran.
The Pakistan Stock Exchange (PSX) said the halt was activated after the KSE-30 index, which tracks 30 highly liquid stocks and serves as the exchange’s volatility gauge, rose 5 percent from the previous day’s close.
“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,” said a notification.
“Please note that as a result of the halt, all outstanding orders have been canceled automatically by the system,” it added.
Commenting on the development, Muhammad Waqas Ghani, head of research at JS Global Capital, attributed it to the temporary truce in the Middle East.
“Pakistan’s diplomatic efforts to ease United States-Iran tensions triggered a sharp sentiment reversal at the Pakistan Stock Exchange, with a peace-driven rally highlighting both the rapid unwinding of risk premiums and the market’s underlying upside potential,” he said.
The market halt was triggered at 09:37 a.m., with trading resuming after a scheduled break.
By 11:20 a.m., the benchmark index had climbed 7.47 percent to 163,006.31 points, gaining more than 11,300 points from the previous close, with strong volumes reflecting renewed investor activity.
Ghani said the rally reflected a swift shift in sentiment as geopolitical tensions eased.
“When diplomacy speaks, markets listen,” he said. “This surge shows that the upside potential was always there, it was simply waiting for certainty.”
Pakistan’s stocks have been sensitive to external shocks in recent weeks, particularly due to fears of disruption in global oil supplies that led to sharp increases in fuel prices in the country.
