The KSE-100 Index surged sharply intraday on Tuesday before closing at 151,673.46, up 465.64 points or 0.31%, as reports emerged that Washington and Tehran were reviewing a Pakistani-brokered ceasefire framework to end their five-week conflict — temporarily triggering PSX’s market halt mechanism during the session. The recovery follows the most volatile fortnight in PSX history, during which the KSE-100 shed more than 20% from its January 2026 peak of 191,033 points.
Selling pressure gripped the market at the opening as investor sentiment turned sharply negative amid geopolitical uncertainty, with the KSE-100 plunging 1,679.87 points within the first minute of trading. The index touched an intraday low of 149,129.41 and a high of 152,013, before closing at 151,673.46, up 465.64 points or 0.31%.
Trump’s continued aggressive rhetoric and delays in ceasefire developments weighed heavily on equities in the early session. The market later staged a recovery on expectations that Pakistan’s diplomatic efforts may bring positive outcomes. K-Electric led volumes with 53.6 million shares, followed by Trust Brokerage with 26.4 million shares and Cnergyico PK with 16.7 million shares. Foreign investors bought shares worth Rs 394.9 million.
| Metric | April 8, 2026 | Previous Close |
|---|---|---|
| KSE-100 Close | 151,673.46 | 151,207.81 |
| Change | +465.64 points | — |
| % Change | +0.31% | — |
| Intraday High | 152,013 | — |
| Intraday Low | 149,129.41 | — |
Source: PSX official data, 8 April 2026.
A Pakistani-brokered plan emerged from intense overnight contacts, proposing an immediate ceasefire followed by negotiations on a broader settlement to be concluded within 15 to 20 days, Reuters reported, citing a source aware of the proposals. Pakistan’s army chief, Field Marshal Asim Munir, was in contact “all night long” with US Vice President JD Vance, special envoy Steve Witkoff, and Iranian Foreign Minister Abbas Araqchi.
Topline Securities described the session as one where “early pressure reflected heightened geopolitical concerns; however, sentiment took a decisive turn as optimism around a potential ceasefire and the anticipated reopening of the Strait of Hormuz triggered a strong late-session recovery. The rebound was led by aggressive value hunting and short covering, allowing bulls to regain control by the close.”
However, Iran rejected the initial framework. Iran transmitted its response to the United States through Pakistani intermediaries, dismissing calls for a temporary truce and instead delivering a 10-point counteroffer outlining sweeping demands to end the war. Pakistan’s push for a phased 45-day truce offers fragile progress, but Israel’s ongoing operations and Iran’s defiance sustain uncertainty.
AKD Securities Director Research Mohammed Awais Ashraf said the KSE-100 had remained under pressure since the opening bell because the possibility of escalation in the Middle East war and the approaching deadline for a deal had kept investors on the sidelines. He said investors were expecting a positive development and the market was likely to recover its losses. Analysts noted that despite the late-session recovery, volatility may persist and investors should adopt a cautious “wait-and-watch” approach in the near term.
ENGROH, PPL, LUCK, HUBC, OGDC, and MCB provided support, adding 666 points to the index. Key laggards including UBL, BAFL, ATRL, POL, and NESTLE collectively shaved off 716 points.
PSX has been the third worst-performing market globally in Q1 2026. The benchmark KSE-100 Index showed continued volatility, falling 1,309 points or 0.9% week-on-week the previous week, to close at 150,398.70. According to Topline Securities, the PSX ranked among the worst-performing markets globally in the March 2026 quarter, posting negative returns of 14.5% in rupee terms and 14.6% in dollar terms, placing it as the third worst-performing equity market worldwide.
The full circuit-breaker halt story at PSX during the current crisis:
| Date | Event | KSE-100 Move |
|---|---|---|
| 2 March 2026 | US-Israel strikes on Iran — panic selloff | −16,089 points (−9.57%) — lower halt |
| 10 March 2026 | Trump hints Iran war could end | +11,000 points — upper halt |
| 1 April 2026 | Conciliatory US-Iran signals | +7,461 points (+5.02%) — upper halt |
| 7 April 2026 | Trump deadline pressure | −1,679 early; +465.64 close |
| 8 April 2026 | Pakistan-brokered framework surfaces | +465.64 (+0.31%) |
The 8 April session tells a clear story: PSX responds faster to geopolitical signals than to any domestic economic data. The market opened 1,679 points lower on Trump’s escalatory language, then recovered on Pakistan’s diplomatic breakthrough — all within a single session. For long-term investors, the KSE-100 at around 151,000 trades at a price-to-earnings ratio of approximately 7–8x, near multi-year valuation lows. But any ceasefire that reopens the Strait of Hormuz would immediately reset Pakistan’s fuel import bill, relieve the current account, and create conditions for the SBP to move on the policy rate toward the sub-10% target the PM has set — a powerful multi-sector catalyst for equities.