June 24, 2025 – The Pakistan Stock Exchange (PSX) rebounded sharply on Tuesday, driven by a US-brokered ceasefire between Iran and Israel and a steep decline in oil prices, fueling institutional buying and restoring investor confidence.
Market Performance
The KSE-100 Index soared to 122,246.63, gaining 6,079.16 points or 5.23% from its previous close of 116,167.47. The index hit an intraday high of 122,045.62, up 5,878.15 points (5.06%), and a low of 120,369.53, reflecting a 4,202.06-point rise (3.61%). The surge triggered a mandatory one-hour trading halt after the KSE-30 Index jumped 5%, resuming at 12:31 PM PKT.
Ceasefire and Oil Price Impact
The rally followed a late Monday announcement by US President Donald Trump of a “Complete and Total CEASEFIRE” between Iran and Israel, effective for 12 hours, after which the conflict would be considered ended. The ceasefire, coupled with a sharp drop in oil prices, eased fears of prolonged Middle East tensions. “The ceasefire and the subsequent plunge in oil prices have triggered the rally today,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. “The falling oil prices and the ending of the threat of a prolonged conflict have calmed the markets, giving investors confidence to re-enter.”
Market Recovery
The surge marked the PSX’s second-highest single-day gain on a closing basis, recovering Monday’s losses when the KSE-100 Index fell 3,855.77 points (3.21%) to 116,167.47. “Ceasefire news and institutional buying are helping the stock market recover yesterday’s losses,” noted Mohammed Sohail, CEO of Topline Securities. Trump’s call for peace, following Iran’s missile strike on a US base in Qatar, further bolstered market sentiment, with the president expressing optimism for “Peace and Harmony in the Region.”
Outlook
The ceasefire’s stability and sustained low oil prices will be critical for maintaining investor confidence. As global markets monitor the Middle East, the PSX’s robust performance signals a positive shift for Pakistan’s economy.
