Pakistan Stock Exchange Surges Nearly 6,000 Points After Iran-Israel Ceasefire

The Pakistan Stock Exchange (PSX) experienced a significant surge on June 24, 2025, with the KSE-100 Index soaring by nearly 5,900 points during intraday trading. This surge was driven by investor optimism following reports of a ceasefire agreement between Iran and Israel, easing geopolitical tensions in the Middle East. The positive sentiment was further bolstered by a decline in global oil prices, which alleviated concerns about inflationary pressures on Pakistan’s economy.

The ceasefire announcement, attributed to statements from U.S. President Donald Trump, marked a de-escalation after weeks of heightened conflict involving missile exchanges between Iran and Israel. Posts on X reflected widespread relief among investors, with many highlighting the PSX’s rapid recovery from recent losses as a sign of restored confidence. The KSE-100 Index, which opened at 116,168 points, climbed to 120,647 within hours, reflecting robust buying across sectors such as energy, banking, and cement.

This rally underscores the potential for economic growth in Pakistan when external risks subside. Analysts note that the ceasefire could stabilize regional trade routes and reduce energy costs, which are critical for Pakistan’s import-dependent economy. Lower oil prices are expected to ease the burden on the country’s foreign exchange reserves, supporting fiscal stability and creating opportunities for growth in manufacturing and exports.

Market experts also point to domestic factors contributing to the upbeat sentiment. Recent government measures to streamline taxation and boost foreign investment have laid the groundwork for sustained economic expansion. However, analysts caution that long-term growth depends on consistent policy implementation and global stability.

The PSX’s performance highlights Pakistan’s sensitivity to geopolitical developments and its resilience in capitalizing on positive shifts. As the ceasefire holds, investors remain optimistic about the prospects for economic growth, with the stock market serving as a barometer of confidence in the nation’s economic trajectory.

Published in SouthAsianDesk, June 24th, 2025

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