WEBDESK: The Pakistan Stock Exchange (PSX) witnessed a massive jump on Monday morning after the recent ceasefire agreement between Pakistan and India. Investors welcomed the news with enthusiasm, pushing the benchmark KSE-100 index up by almost 10,000 points.
The Pakistan Stock Exchange rise saw a 9.3% higher, a rare spike that triggered a temporary trading suspension to maintain market stability. The KSE-100 index rose by 9.76% shortly after opening, reflecting strong investor confidence and relief over easing tensions between the two neighbouring countries.
Market analysts say the the Pakistan Stock Exchange rise was driven by hopes of improved regional stability and a better business environment. With the threat of military conflict decreasing, investors poured money into the stock market, pushing share prices up across multiple sectors.
At 9:30am, the KSE-100 Index stood at 117,104.11 – up by 9,929.48 points or 9.26% – prompting a temporary halt in market operations due to the overwhelming upward momentum.
This historic rise marks the index’s strongest performance in recent years, as investors responded with optimism to regional de-escalation and financial assurances from global institutions.
According to the Pakistan Stock Exchange’s trading rules, if the index moves more than 7.5% in either direction, trading is automatically paused for a short time. This is done to prevent extreme volatility and give investors time to assess the situation.
Market sentiment following the Pakistan Stock Exchange rise
The positive momentum was further reinforced by the IMF’s weekend approval of a $1 billion disbursement under its Extended Fund Facility (EFF), along with an additional $1.4 billion under the Resilience and Sustainability Facility (RSF). These inflows are expected to bolster Pakistan’s foreign exchange reserves and provide fiscal space to manage its balance of payments more effectively.
Furthermore, market sentiment was boosted further due to US President Donald Trump’s statements who expressed strong support for resolving the Kashmir dispute.
Rise in global markets
The Pakistan Stock Exchange rise coincided with positive trends in global markets.
S&P 500 and Nasdaq futures rose by 1.2% and 1.4%, respectively, while key European benchmarks such as EUROSTOXX 50, DAX, and FTSE futures advanced between 0.4% and 0.9%. Asian markets also edged higher, with Japan’s Nikkei up 0.3% and South Korea’s benchmark gaining 0.4%.
Traders and brokers at the PSX expressed joy, calling it one of the most significant rallies in recent memory. Many believe this positive momentum could continue if peace efforts between Pakistan and India remain on track.
The Pakistan Stock Exchange has faced many ups and downs in recent years due to political instability, inflation, and global economic pressures. But this sudden rally and Pakistan Stock Exchange rise offers a hopeful sign for the market’s future direction.
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