KARACHI — Pakistan’s benchmark KSE-100 index surged sharply on Tuesday, advancing 9,303.75 points, or 6.35 per cent, during early trading, triggering a temporary market halt due to the steep rally.
According to a notification from the Pakistan Stock Exchange (PSX), the halt was activated when the KSE-30 index recorded a 5 percent increase from the previous day’s close, in line with the exchange’s market suspension regulations. Trading resumed at 10:27am.
Read More: KSE–100 rebounds with 2000-point surge in early trading
The sharp rebound comes a day after the KSE-100 index suffered a major decline, closing at 146,480 points on Monday — a drop of 11,015 points, or 6.99 per cent, marking the second-largest single-day fall in the index’s history. That sell-off reportedly wiped out over Rs1.09 trillion in market value, sending shockwaves across investor circles.
Tuesday’s recovery was supported by the State Bank of Pakistan (SBP)’s announcement to maintain its key policy rate at 10.5 percent, following the latest Monetary Policy Committee meeting. Analysts said this decision met market expectations, helping restore investor confidence.
Global developments also played a role in the rally. US stocks rebounded on Monday after a steep sell-off, driven by comments from Donald Trump suggesting that the ongoing US-Israeli war on Iran could be nearing its end. Similarly, oil prices fell on Tuesday after hitting a more than three-year high in the previous session, alleviating concerns over prolonged disruptions to global energy supplies.
Read More: PSX plummets by over 11,000 points as oil prices surge
Market analysts noted that the combination of stable monetary policy, improving investor sentiment, and easing geopolitical fears contributed to the sudden surge. They cautioned, however, that volatility may persist as traders remain sensitive to developments in both domestic policy and global energy markets.