In a historic surge, the Pakistan Stock Exchange (PSX) witnessed its most significant single-day rally on Monday, May 12, 2025. The benchmark KSE-100 index soared by nearly 10,000 points, marking an increase of over 9% and reaching 117,104 points. This unprecedented rise was primarily driven by the announcement of a ceasefire between India and Pakistan, which significantly boosted investor confidence.
Key Factors Behind the Surge
- India-Pakistan Ceasefire: The de-escalation of tensions between the two nations alleviated geopolitical concerns, encouraging investors to re-enter the market.
- IMF Loan Approval: The International Monetary Fund’s recent approval of a loan to Pakistan provided a financial cushion, further enhancing market sentiment.
Market Response
The rapid ascent triggered a market-wide circuit breaker, halting trading for an hour to prevent excessive volatility.
Regional Impact
The positive developments also influenced Indian markets, with the BSE Sensex and NSE Nifty indices experiencing significant gains, reflecting the broader regional optimism. mint
Conclusion
The PSX’s remarkable rally underscores the profound impact of geopolitical stability and financial support on market dynamics. Investors are advised to monitor ongoing developments closely, as sustained peace and economic reforms could pave the way for continued growth.
