The Pakistan Stock Exchange (PSX) made a historic recovery on Monday, boosted by a series of positive developments. These included a ceasefire between India and Pakistan and the IMF's approval of crucial funding for Pakistan.
The main KSE-100 Index jumped by 10,123 points—the highest single-day gain ever—closing at 117,297.73, up 9.45%. During the day, it reached an intraday high of 117,104.11.
Market expert Mohammed Sohail, CEO of Topline Securities, said investor confidence rose sharply due to the ceasefire and IMF loan approval. A temporary market halt was triggered after the KSE-30 Index rose over 5%, as per PSX rules. It was the first upside halt in two years.
After trading resumed at 10:42 AM, the market continued to rise. There was strong buying in banking and energy stocks, including major players like HBL, MCB, OGDC, PSO, and PPL.
According to brokerage Arif Habib Limited (AHL), a mix of positive news—including the ceasefire, IMF support, monetary easing, and better US-Pakistan-India trade outlook—sparked the rally. The market had previously fallen 12.6% since April 22 due to rising tensions after the Pahalgam attack.
Last week, the market had dropped by 6,939 points (6.1%) due to geopolitical concerns, ending at 107,175 points.
On the international front, global stock markets also rose as US-China trade talks showed progress, and peace efforts in Ukraine continued.
The Pakistani rupee also improved slightly, gaining Re0.14 to close at 281.57 against the US dollar.
Trading activity increased with 732.88 million shares traded and share value rising to Rs30.38 billion. K-Electric led the volume chart with over 114 million shares traded.
In total, shares of 405 companies rose, 26 declined, and 31 remained unchanged.
