PSX skyrockets nearly 10,000 points

The Pakistan Stock Exchange (PSX) witnessed a sharp rally on Monday as tensions between Pakistan and India eased, prompting the benchmark KSE-100 index to soar by over 9%, which led to a temporary suspension of trading.

During intra-day trade, the KSE-100 index surged by 9,928 points — marking the highest single-day gain in points on record — reaching 117,104.11, up from its previous close of 107,174.63.

This surge was primarily fueled by two key developments: the announcement of a ceasefire agreement between Pakistan and India, and the International Monetary Fund’s (IMF) approval of a crucial loan tranche over the weekend.

Investors responded with strong buying activity, buoyed by the improved geopolitical climate and more optimistic economic outlook. However, due to the steep rise, trading was halted for an hour as a circuit breaker was triggered to curb excessive volatility.

According to a note from Arif Habib Limited, the ceasefire agreement is seen as the most significant driver behind the rally — a major diplomatic breakthrough that significantly reduces regional geopolitical risk.

The development follows weeks of heightened tensions in the aftermath of the Pahalgam attack, which had previously triggered aggressive selloffs and sparked investor anxiety.