Massive buying erupted at the Pakistan Stock Exchange this morning. The KSE-100 Index gained nearly 4,400 points during the opening session as investors celebrated the US-Iran peace deal announcement.
The PSX has been through one of the most volatile years in its history — from an all-time high of 191,032 in January to a record single-day crash of 16,089 points when the war began in March, to a 2,000-point crash in early June. Today’s rally adds another dramatic chapter.
The Numbers Right Now
Geo News tracked the session in real time — the KSE-100 touched an intraday high of 176,917.76, gaining 4,517.86 points (2.62%) from the previous close of 172,399.90. Business Recorder confirmed broad-based buying across all major sectors without exception.
Three Reasons Markets Are Surging
Ismail Iqbal Securities CEO Ahfaz Mustafa told reporters: “A budget that has directionally changed from consolidation to growth, along with the solution to the Iran-US conflict, has buoyed sentiment. It has also tamed expectations of a rate hike and triggered buying across all sectors, especially construction.”
Three positives aligned at once — peace deal, growth-oriented budget, and lower rate expectations. When that happens, markets move fast.
What the Budget Did for the Stock Market
The Super Tax cut announced in the Budget 2026-27 is the single biggest positive for equities. Super Tax was abolished for companies with profitability below Rs500 million and reduced by 2% for companies above that threshold — a relief that benefits approximately 67% of listed PSX companies.
Lower taxes on corporate profits mean higher earnings per share. Higher EPS means higher valuations. Higher valuations mean higher stock prices.
What This Means for Pakistani Investors
For ordinary Pakistanis with money in equity mutual funds, pension schemes, or direct stock holdings — your portfolio is up roughly 2.5% before noon. That is a good day.
But a word of caution. Markets can give back gains as quickly as they deliver them. The Iran deal has not been formally signed yet — June 19 is the signing date. If anything disrupts that before Friday, expect volatility. Do not make large investment decisions based on a single morning’s rally.
What Happens Next
The PSX closed at 191,032 before the Iran war crashed everything. The index is now at approximately 176,000 — a 15,000-point gap still to recover.
If the deal signs on Friday, oil prices stabilize, and the budget’s tax relief takes effect in July, the PSX could realistically test 185,000 by September.
Disclaimer: This article is for informational purposes only. 24PakTimes does not provide financial advice. Consult a licensed financial advisor before investing.
