Monitoring Desk
The Pakistan Stock Exchange (PSX) opened with a sharp rally on Monday, surging over 9% in early trading after a ceasefire agreement between Pakistan and India restored calm following four days of cross-border hostilities.
The KSE-100 index jumped by 9,929.48 points, or 9.26%, to reach 117,104.11 at 9:30am, up from the previous close of 107,174.63. The rally triggered an automatic one-hour market halt due to excessive volatility, reflecting the strength of investor sentiment.
The ceasefire, brokered over the weekend by US President Donald Trump, marked a dramatic de-escalation between the nuclear-armed neighbours after days of tit-for-tat strikes. The truce was widely welcomed by global leaders and instantly calmed jittery financial markets.
“The market has reacted jubilantly to the ceasefire announcement after Pakistan established effective deterrence against India,” said Yousuf M. Farooq, Director of Research at Chase Securities. “The PSX has saluted the Pakistan Air Force this morning with a surge of over 9pc.”
He added that the recent interest rate cut and the release of a $1 billion tranche from the International Monetary Fund (IMF) have further fueled investor optimism.
Samiullah Tariq, Head of Research and Development at Pak Kuwait Investment Company Ltd, highlighted three key drivers of Monday’s rally: the ceasefire with India, the IMF disbursement, and a supportive statement from President Trump on boosting trade with Pakistan.
Trump, after helping mediate the ceasefire, offered to play a role in resolving the longstanding Kashmir dispute and vowed to “increase trade substantially” with both Pakistan and India — remarks that were well received by market participants.
Awais Ashraf, Director of Research at AKD Securities, said the recent conflict had reshaped Pakistan’s geopolitical standing. “This brief conflict has demonstrated our military and technological superiority over India, which is likely to strengthen ties with Gulf countries and support growth in our defence and technology exports,” he noted.
Ashraf also emphasized that investor attention will now likely shift toward improving macroeconomic fundamentals, particularly ahead of the federal budget scheduled for June 2. Pakistan’s economic indicators have shown strong improvement, including an all-time low consumer inflation rate of 0.3% in April and a record-high current account surplus of $1.195 billion in March.
Analysts believe the PSX’s strong opening marks a turning point for investor confidence, supported by geopolitical stability, international support, and positive economic signals.
