Pakistan Stock Exchange soared on Monday following major positive shifts. The ceasefire agreement between Pakistan and India and the IMF’s greenlight on a crucial financial package triggered an extraordinary market reaction. However, Investors welcomed the news with enthusiasm.

Pakistan Stock Exchange: Ceasefire and IMF Deal Spark Investor Confidence

The KSE-100 Index climbed by 10,123 points, recording its biggest one-day gain ever. It closed at 117,297.73—more than 9% higher than the previous close. The rally was so strong that it briefly halted trading, as per market rules.

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This gain followed a turbulent week marred by conflict fears. The previous close stood at 107,174.63 points. The massive recovery reflected investors’ restored faith in market stability.

Pakistan Stock Exchange Breaks Records

According to PSX data, the market volume reached over 345.3 million shares. The total turnover crossed Rs21.98 billion. Market experts credited this sharp uptrend to decreased tensions and financial reassurance from the IMF.

Transitioning from losses, the PSX had plunged 6,939 points the previous week. Tensions with India and economic instability had shaken confidence. The market remained bearish even after a small Friday recovery.

Earlier Turmoil Amid Rising Tensions

Earlier in the week, on Monday, the market started flat due to India-Pakistan tensions and SBP policy uncertainties. Moreover, the index dropped 1,036 points in early trade but recovered slightly to close nearly unchanged.

On Tuesday, the market lost 534 points. Optimism over the central bank’s 100bps rate cut faded as geopolitical concerns returned. Moody’s warning about Pakistan’s economy added pressure.

Wednesday saw a sharp 6,500-point dive due to rising border conflict fears. The bourse struggled to stabilize.

Friday’s Turnaround Before the Surge

By Friday, the PSX staged a recovery of 3,650 points, cutting back some losses. Yet, the week still ended down by 6,939 points or -6.08% WoW. The main negative contributors were banks, oil, cement, technology, and pharma sectors. Sugar added minor gains.

Arif Habib Limited noted in its review that geopolitical instability dominated the week’s market sentiment. However, the ceasefire and IMF boost finally turned the tide.

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