Karachi, May 12 (PTI) The Pakistan Stock Exchange (PSX) recorded its sharpest single-day gain in 26 years on Monday, gaining an over nine per cent increase in trading amid an understanding between India and Pakistan to halt all military actions.
With the geopolitical situation limping back to normalcy, the KSE-100 index scored high during intraday trading.
The index opened with a gain of 9,929.48 points, or 9.26 per cent, to stand at 117,104.11 points from the previous close of 107,174.63.
Due to the massive gains, the PSX was suspended for an hour after opening to control excessive volatility.
Mid afternoon, the benchmark index stood at 116,857.00 points, with a gain of 9,682.37 points (9.03 per cent).
It closed at 117,297.73 points, with a gain of 10,123.10 points (9.45 per cent) compared to the previous close, which marked the highest intra-day gain (points-wise) — more than double the 4,700 points surge in November 2024.
Quoting Topline Securities, a Pakistani brokerage house, Geo News said that the market witnessed a historic day with the benchmark index rising by 9.45 per cent in a single day, the highest rise after 26 years.
“The massive rally, spurred by easing geopolitical tensions and a major confidence boost from an expected International Monetary Fund loan tranche, sent the bulls on a stampede,” it said.
Fatima Bucha of AKD Securities said that the understanding reached between the two countries “has apparently boosted investor’s mood and confidence.” Last week, the PSX lost nearly 6.5 per cent due to the conflict with India as uncertainty prevailed in the country.
Tensions between India and Pakistan soared after the Indian Armed Forces hit terror launchpads in Pakistan and Pakistan-occupied Kashmir (PoK) last week in response to the Pahalgam terror attack.
On Saturday, the two neighbours reached an understanding to stop all firings and military actions on land, air and sea, with effect from 5 pm that day.
Following that, the situation in the stock exchange headed back to business as usual.
Fatima said the recent interest rate cut by the State Bank and the approval of the USD 1 billion tranche by the International Monetary Fund (IMF) further fuelled investor enthusiasm.
Samiullah Tariq, head of research and development at Pak Kuwait Investment Company Ltd, said US President Donald Trump’s statement on increasing trade with Pakistan has also boosted investors’ confidence in the market. PTI CORR SH GRS GRS GRS
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