This sharp rally was driven by a breakthrough
ceasefire between Pakistan and India and
the IMF approval of a key financial package
Business Reporter
Karachi: The Pakistan Stock Exchange (PSX) recorded the largest single-day gain in its history on Monday, as the benchmark KSE-100 Index surged by 10,123 points to close at 117,297.73. This sharp rally was driven by a breakthrough ceasefire between Pakistan and India and the International Monetary Fund’s (IMF) approval of a key financial package.
The index rose more than 9% during intra-day trading from its previous close of 107,174.63, triggering a temporary suspension of trading under market regulations due to extreme fluctuations.
Analysts attributed the record-breaking rally to renewed investor confidence following the geopolitical de-escalation and positive economic signals. Improved sentiment reflected in robust trading activity, with volume reaching over 345.3 million shares and a turnover of Rs21.98 billion, according to PSX data.
📈 Read More: PSX sinks 6,939 points amid tensions
This historic recovery followed a turbulent week in which the KSE-100 index plunged 6,939 points—or 6.08% week-on-week (WoW)—amid rising border tensions and economic uncertainty. Despite a brief rebound on Friday that added 3,650 points, the broader trend last week remained bearish.
The week began with volatility, as the index dipped 1,036 points during early Monday trade, closing nearly flat at 114,102. On Tuesday, the bourse lost 534 points as optimism over the State Bank of Pakistan’s 100 basis-point rate cut faded under renewed geopolitical concerns and Moody’s warning over economic stability.
Wednesday saw the index nosedive over 6,500 points amid fears of further border escalation. Sector-wise, the biggest negative contributors last week were banks (-1,637 points), exploration and production (-905 points), cement (-738 points), technology (-508 points), and pharmaceuticals (-436 points). The only sector posting a minor gain was sugar (+7 points).
In its weekly review, brokerage Arif Habib Limited noted that the market was “mostly in the red” due to persistent tensions and growing investor anxiety over policy direction.
However, with the announcement of a ceasefire and fresh IMF support, investor sentiment appears to be turning a corner—ushering in hopes of market stability and renewed growth.
