KARACHI, April 8, 2026: The Pakistan Stock Exchange (PSX) recorded a historic rally on Wednesday, with the benchmark KSE-100 index gaining nearly 14,000 points in intraday trade as investors reacted to the US-Iran ceasefire and easing regional tensions.

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Largest single-day gain in PSX history Ceasefire drives investor sentiment Outlook linked to regional stability

The sharp rise reflects improved market sentiment driven by expectations of lower geopolitical risk and stabilising global oil prices, factors that directly influence Pakistan’s equity market and investor confidence.

The KSE-100 index jumped 12,362.38 points, or 8.15 per cent, shortly after the opening bell to reach 164,035.83, triggering a temporary trading halt under PSX regulations due to the scale of the surge.

By 3:08pm, the index had climbed 13,925.47 points, or 9.18 per cent, to 165,598.92, compared with the previous close of 151,673.45.

Largest single-day gain in PSX history

The rally marks the highest single-day increase in absolute terms in PSX history, surpassing the previous record gain of 10,123 points recorded on May 12, 2025.

The surge follows a period of volatility in recent sessions, as investors remained cautious ahead of geopolitical developments and a US deadline related to Iran. On Tuesday, the market had posted a modest gain of 465.64 points amid uncertainty.

Ceasefire drives investor sentiment

Analysts said the ceasefire between the United States and Iran is a key factor shaping short-term market direction. De-escalation in the Middle East is expected to reduce pressure on global oil prices, improve risk appetite and support capital inflows into emerging markets, including Pakistan.

The PSX had previously faced significant losses during the escalation phase of the conflict. On March 2, the market recorded its steepest single-day decline, dropping 16,089 points (9.57 per cent) following the assassination of Iran’s Supreme Leader Ayatollah Ali Khamenei.

Outlook linked to regional stability

Market participants say continued stability in the Middle East will remain critical for sustaining the rally. Any renewed tensions could reverse gains, while further diplomatic progress may strengthen investor confidence and support market recovery.

The latest surge highlights the sensitivity of Pakistan’s stock market to global geopolitical developments, particularly those affecting energy markets and regional stability.

Also read: PSX shows volatility as KSE-100 index edges higher amid geopolitical tensions