ISLAMABAD: The Pakistan Stock Exchange witnessed its most explosive single-day rally in history on Wednesday as the KSE-100 index surged nearly 14000 points on the back of a landmark US-Iran ceasefire brokered by Pakistan.

Investors poured into the market in a wave of celebratory buying that pushed the benchmark index to record intraday highs within minutes of opening.

The KSE-100 jumped 12362.38 points or 8.15 percent to reach 164035.83 shortly after trading began.

PSX regulators activated the circuit breaker and temporarily suspended trading across all equity markets to contain the unprecedented volatility.

As of 3:08pm the index had climbed a staggering 13925.47 points or 9.18 percent from the previous close of 151673.45 to stand at 165598.92.

This absolute gain eclipsed the previous historic record of 10123 points or 9.45 percent set on May 12 2025 after Pakistan shot down seven Indian fighter planes during a ceasefire with India.

Regional media including Dawn The Express Tribune and Dunya News described the session as the largest single-day rally in PSX history driven purely by the easing of Middle East tensions.

The ceasefire agreement announced by US President Donald Trump includes a two-week halt to hostilities and the reopening of the Strait of Hormuz under the so-called Islamabad Accord.

Pakistan Prime Minister Shehbaz Sharif played the central mediating role with follow-up talks scheduled in Islamabad on April 10.

Global oil prices crashed 15 to 16 percent overnight removing a major risk premium that had weighed on energy-sensitive equities.

KTrade Securities analyst Ahmed Sheraz noted the 8.5 percent opening gap and the decisive shift to positive sentiment across the board.

The KSE-30 index also surged 4019 points or 8.75 percent to 49957.93 triggering its own five-minute halt at the five percent threshold.

Trading volumes exploded past 1.24 billion shares with 397962 trades executed as both local and foreign investors rushed to capitalise on the peace dividend.

Banking energy and export-oriented stocks led the charge while the broader all-share index gained over 7900 points.

Earlier in March and early April the same index had plunged more than 5400 points on fears of full-scale US-Iran conflict.

International outlets such as AP Reuters and BBC reported the ceasefire details but the scale of the PSX reaction was prominently authenticated through Pakistani and regional coverage.

Analysts at Topline Securities forecast fresh foreign portfolio inflows could exceed 500 million dollars in the coming week alone.

By close the KSE-100 settled near 165811 points posting a 9.32 percent daily gain and lifting market capitalisation by hundreds of billions of rupees.

The rally underscores Pakistan’s rising diplomatic leverage and its direct translation into domestic economic confidence.

Retail investors posted double-digit intraday returns while institutional desks described scenes of euphoria on the Karachi trading floor.

With the ceasefire holding and oil prices stabilised economists project lower import bills and improved growth forecasts for the current fiscal year.

The PSX has now recovered sharply from recent geopolitical shocks proving once again its sensitivity to international peace signals.

Further rounds of Islamabad-hosted talks could pave the way for a permanent settlement and sustained bull run in Pakistani equities.

This record performance caps months of volatility and positions the market for new all-time highs if regional stability endures.

Market watchers expect Thursday’s session to open with continued momentum as futures already signal strong follow-through.

The event has not only boosted investor morale but also spotlighted Pakistan’s pivotal role in global conflict resolution.