Shares gain more than 6,500 points after Iran-Israel ceasefire

Shares at the Pakistan Stock Exchange (PSX) gained more than 6,500 points on Tuesday after US President Donald Trump announced a ceasefire between Iran and Israel, showing positive sentiments among investors, and signaling geopolitical stability.

Just hours after the market opened, a bullish rally was observed, with the benchmark index increasing by 6,557.74 points at 12:34 am, leading the market to 122,725.21 points, compared to the previous closing at 116,167.47. 

The positive sentiment was witnessed just after a ceasefire between Iran and Israel. US President Donald Trump intervened, and proposed a ceasefire, which was approved by Israel and then Iran. 

“The ceasefire is now effective. Please do not violate it,” President Trump wrote on the social media platform.

Read: Iran launches retaliatory strikes after attacks on oil sites, 10 dead in Israel 

However, global shares and the dollar declined despite the truce, while the price of oil also witnessed a drop of 3%.

Similarly, the gold was also down about 0.5% to $3,351.47, hitting its lowest level since June 11 earlier in the session. US gold futures slipped 0.9% to $3,365.30.

Earlier, on Monday, investor sentiment was severely dented by rising fears of a broader regional conflict after the US reportedly struck multiple Iranian nuclear sites over the weekend. 

Tehran’s subsequent warning of a potential closure of the Strait of Hormuz, a vital global oil transit chokepoint, further stoked risk aversion across global financial markets.