Pakistan stocks surged Monday with the benchmark index nine percent higher after a weekend ceasefire agreement with neighbour India following days of confict.
The benchmark KSE-100 Index opened at 117,104.11 points, up 9,929.48 points, or 9.26 percent, prompting an hour-long trading suspension because limits had been reached.
“Today’s sharp surge in the stock market stems from a powerful convergence of bullish triggers that have swiftly turned investor sentiment from fear to opportunity,” Sana Tawfiq, head of research at Arif Habib Limited, Pakistan’s largest securities brokerage, told AFP.
The jump also comes on the back of the International Monetary Fund (IMF) on Friday approving a Pakistan loan-programme review, unlocking around $1 billion in much-needed funds and greenlighting a new $1.4 billion bailout despite India’s objections.
“We are very pleased today that the market has performed extremely well,” Ahmed Chinoy, director of the Pakistan Stock Exchange Limited, told AFP, while celebrating by cutting a cake with brokers.
“This positive shift is reinforced by the IMF’s dual approvals, providing both critical funding and international validation of Pakistan’s reform path,” Tawfiq added.
US President Donald Trump announced the ceasefire on Saturday after four days of missile, drone and artillery attacks by India and Pakistan which killed at least 60 people.
In a series of posts on social media, Trump also pledged to increase trade with both nations.
“While optimistic, sustaining momentum requires ceasefire compliance, accelerated reforms, and managing global headwinds like oil prices,” senior economist Sanie Khan told AFP.
A policy rate cut by the country’s central bank was also seen as a positive factor boosting equity flows.
