KARACHI – Pakistan Stock Exchange (PSX) saw a historic recovery on Monday when the benchmark KSE-100 index jumped 9,929 points, standing at 117,104, following the announcement of a ceasefire between India and Pakistan.
Investor sentiment turned sharply positive after diplomatic action ended days of increased military tension between the two nuclear powers. The market’s sudden impulsion to the upside caused a mandatory one-hour trading halt — a “cool-down period” put in place to deal with excessive volatility — one of the most spectacular turnarounds in PSX history.
Pakistan Stock Exchange
The rebound comes after a week of heavy losses, where the market lost more than 7,000 points amidst rising tensions and regional unrest. Monday’s rebound marks a strong comeback of investor confidence fueled by the prospect of renewed political and economic stability.
Market analysts affirm the ceasefire has renewed optimism among foreign and local investors, with numerous sectors registering solid gains — most notably banking, energy, and construction. “This rally is due to hope that peace will stick and economic activities will become normal,” said a senior market strategist.
Trading is likely to be back to normal in the coming days, with volume and participation likely to be high throughout the week. Investors are now keenly observing the implementation of the ceasefire deal and coming economic indicators.
The rebound has been celebrated as a pointer that normalcy is returning to Pakistan’s financial markets after days of uncertainty.