Trading at the Pakistan Stock Exchange (PSX) had to be suspended for an hour on Monday after the benchmark KSE-100 Index surged nearly 10,000 points less than an hour after trading commenced.
“Due to a 5% increase in the KSE-30 index from the previous trading day’s close of the index, a Market Halt has been triggered as per PSX regulations, and all equity and equity-based markets have been suspended accordingly,” read a PSX notice.
Analysts have attributed the surge to a ceasefire agreement between Pakistan and India, as well as the weekend approval by the International Monetary Fund (IMF) of a staff-level agreement for a second tranche of the ongoing $7 billion Extended Fund Facility. The global lender also approved additional funds for Pakistan under the Resilience and Sustainability Facility.
At 9:30 a.m., the benchmark index was hovering at 117,104.11 points, an increase of 9,929.48 points or 9.26%, the highest single-day opening gain ever witnessed at the PSX. Trading was subsequently halted at 9:37 a.m.
The market resumed trading at 10:42 a.m., with the bullish momentum continuing. By 11 a.m., the benchmark index had climbed to 116,191.58 points. Brokerage houses expect the rally to sustain throughout the day, with the KSE-100 index anticipated to close around 6-7% higher.
Another factor credited for the surge, by Topline Securities, is a recent statement from U.S. President Donald Trump in which he indicated an intent to “increase trade” with Pakistan following its ceasefire with India.
The recovery follows a 12.6% decline of the KSE-100 after the April 22 Pahalgam attack, which had raised fears of tensions between Pakistan and India.