Stocks rise amid hopes of a ceasefire

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KARACHI: In a turbulent session, the Pakistan Stock Exchange (PSX) witnessed a modest recovery on Monday, as reports of a potential ceasefire in the Middle East helped reverse early declines and restore investor confidence.

According to Topline Securities Ltd, the benchmark KSE-100 index endured a highly volatile session, swinging between an intraday low of 147,771 points and a high of 151,247, before closing at 151,207, up 809 points, or 0.54 per cent.

Initial trading remained under pressure due to heightened geopolitical concerns. However, sentiment shifted later in the day amid optimism over a potential ceasefire and the possible reopening of the Strait of Hormuz. This triggered late-session buying, driven by value hunters and short covering, enabling the market to close in positive territory.

On the index front, major drags included United Bank, Bank Alfalah, Attock Refinery, Pakistan Oilfield and Nestle Pakistan, which collectively shaved off over 700 points. In contrast, Engro Holdings, Pakistan Petroleum, Lucky Cement, Hub Power, Oil and Gas Development Company Ltd, and MCB Bank provided support, adding nearly 660 points.

Late-session buying offsets early geopolitical jitters

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that the market snapped a seven-week streak of Monday losses, which had previously been driven by panic selling linked to adverse geopolitical developments.

He added that investor sentiment improved following media reports of an ‘Islamabad Accord’, under which Pakistan is said to be mediating a phased ceasefire between the United States and Iran.

Market activity remained moderate, with total trading volume dipped 3.12pc to 457 million shares. However, the traded value surged 25.28pc to Rs30.8 billion. Cnergyico PK led the volumes chart, with nearly 58 million shares changing hands.

Despite the recovery, analysts caution that near-term market direction will hinge on developments in ceasefire negotiations.

A sustained de-escalation in the Middle East could ease pressure on global oil prices, stabilise financial markets and support renewed investor inflows at the PSX.

Published in Dawn, April 7th, 2026

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