The Pakistan Stock Exchange’s (PSX) benchmark index KSE-100 surged by more than 14,000 points on Wednesday as investors reacted to the positive developments of a ceasefire between the United States and Iran.

The KSE-100 index surged by 12,362.38 points, or 8.15 per cent, to stand at 164,035.83 shortly after opening. Subsequently, trading was temporarily suspended in accordance with PSX regulations.

As of 3:08pm, the market had gained 13,925.47 points, or 9.18 per cent, from the previous close of 151,673.45 to stand at 165,598.92. The index closed at 165,811.00, up 14137.55 points or 9.32pc.

The gains marked the highest single-day rally in absolute terms in PSX history, surpassing the previous highest-ever gain of 10,123 (9.45pc) on May 12, 2025, after Pakistan shot down seven Indian fighter planes.

On Tuesday, the PSX had closed up by 465.64 points after witnessing extreme volatility as investors had remained highly nervous ahead of the expiry of a US deadline for Iran to agree to a deal.

Analysts believe that the ceasefire will be crucial for the short-term market direction.

Any de-escalation in the Middle East could stabilise sentiment and reduce oil price pressures, and vice versa. This could restore investor confidence, increase inflows, and support a recovery in the PSX.

The PSX had witnessed huge single-day losses since the US-Israel war on Iran began. It had witnessed the steepest single-day plunge, shedding 16,089 points (or 9.57pc), on March 2 following the assassination of Iran’s supreme leader Ayatollah Ali Khamenei.