The Pakistan Stock Exchange (PSX) soared on Monday after major positive developments lifted investor confidence. The KSE-100 index jumped 9,928 points during intra-day trading. It reached 117,104.11 points, marking the largest single-day gain in PSX history. The index rose over 9% from its previous close of 107,174.63 points. As a result, trading was temporarily halted under market regulations triggered by large swings.
This dramatic surge followed the announcement of a ceasefire between Pakistan and India. Investors welcomed the news, which reduced fears of further conflict. Additionally, the IMF released a disbursement that further boosted economic outlook. According to PSX data, over 60 million shares changed hands. The market recorded a turnover exceeding Rs4.37 billion before the halt. Trading resumed at 10:42 am.
The rally comes after a rough week for the stock market. Last week, the KSE-100 index plunged 6,939 points, down 6.08% week-on-week. Geopolitical tensions and uncertainty over State Bank policies weighed heavily on the market. Despite a slight rebound on Friday, the index remained near 107,000 by week’s end. Sectors like banking, cement, and technology saw the most losses.
Earlier in the week, the market had shown a mixed performance. Monday started with a sharp dip of 1,036 points before closing nearly flat. On Tuesday, a brief optimism faded, and the index lost another 534 points. Wednesday saw the steepest drop, over 6,500 points, due to intense border tensions. However, Friday brought relief with a 3,650-point rebound.
Market analysts believe the current uptrend may continue if peace talks and reforms move forward. Arif Habib Limited noted that last week’s poor performance was driven by fears of escalation. Now, with tensions easing and financial support secured, investor confidence is back. The market outlook remains hopeful — for now.