KSE-100 Index Posts Record Single-Day Gain
In a remarkable display of investor optimism, the Pakistan Stock Exchange (PSX) surged on Monday, with the benchmark KSE-100 index rising by 9,928 points, closing at 117,104.11. This marks the largest single-day gain in index points in the market’s history.
Ceasefire Sparks Market Optimism
The rally was primarily triggered by the announcement of a ceasefire agreement between Pakistan and India, significantly reducing regional tensions. The development restored investor confidence after weeks of uncertainty and market decline.
The PSX saw trading briefly suspended under circuit breaker rules due to extreme volatility—a rare occurrence that reflects the intensity of market activity.
Boost from IMF Support and Monetary Easing
Investor sentiment was further strengthened by the International Monetary Fund (IMF), which approved a $1 billion loan tranche along with an additional $1.4 billion under the Resilience and Sustainability Facility (RSF). This financial backing is seen as a critical step in stabilizing Pakistan’s external accounts and supporting economic reforms.
Additionally, the State Bank of Pakistan (SBP) announced a 100 basis point cut in the policy rate, signaling a pro-growth monetary stance that also contributed to the market’s positive momentum.
Global and Domestic Signals Reinforce Confidence
Analysts also pointed to encouraging trade signals from the United States, suggesting a potential improvement in bilateral economic relations. These combined factors have played a significant role in lifting market sentiment and encouraging institutional buying.
Focus Shifts to Economic Policy and Federal Budget
The historic rally comes after a period of steep losses driven by heightened geopolitical tensions. With the market showing signs of recovery, investors are now turning their attention to the upcoming federal budget and broader measures aimed at economic stabilization and growth.
Monday’s surge is seen not only as a technical rebound but also as a vote of confidence in Pakistan’s economic outlook, provided stability and reform momentum continue.
