The Pakistan Stock Exchange (PSX) witnessed a record-breaking rally on Monday. The KSE-100 Index surged by 9,926 points in a single session. With this sharp rise, the index soared to an all-time high of 117,104 points.
This marks one of the largest single-day gains in the history of Pakistan’s financial markets.
Trading Temporarily Halted
Due to the extraordinary movement, trading was paused for one hour. The halt followed market volatility protocols to prevent excessive speculative activity.
PSX officials said the halt was implemented as a precautionary measure to ensure fair trading and system stability.
Market Confidence Rebounds
Market experts credit the massive surge to two main factors. First, the International Monetary Fund (IMF) recently approved a crucial loan tranche for Pakistan. Second, a ceasefire agreement between Pakistan and India eased investor fears after a brief period of military escalation.
Together, these developments restored investor confidence and fueled the rally.
Recovery After Last Week’s Plunge
The historic rally comes after a week of sharp decline. Last week, the KSE-100 index plunged by 6,939 points, a 6.1% drop on a weekly basis. It closed near 107,000 points, weighed down by rising geopolitical tensions.
Despite a partial rebound on Friday, the overall trend remained negative until Monday’s turnaround.
Volatility Ahead of the Surge
Before the Monday rally, the PSX had started the week on a volatile note. On the first day of trading, the index dropped by 1,036 points in early hours due to uncertainty over the State Bank’s policy direction and India-Pakistan tensions.
By the end of that session, the market settled almost flat, losing just 11.70 points to close at 114,102.
Tuesday’s Dip Despite Rate Cut
On Tuesday, the PSX faced another dip. Investors initially reacted positively to the State Bank’s 100 basis points rate cut. However, renewed fears over India-Pakistan tensions and Moody’s warning on Pakistan’s economic outlook reversed the optimism.
The market closed the day with a 534-point loss.
Read: Aerial Warfare 2.0: How Pakistan’s JF-17 Changed Warfare Forever
Analysts Expect Continued Volatility
Analysts caution that despite Monday’s impressive rally, the market may remain volatile. Global credit ratings and geopolitical stability will continue to shape sentiment.
However, Monday’s session has sent a strong signal of investor trust, particularly in Pakistan’s ability to navigate economic and political challenges.
Monday’s rally marked a turning point for the PSX. With strong external support from the IMF and a diplomatic breakthrough with India, investor sentiment shifted sharply. The challenge now lies in maintaining this momentum amid continuing uncertainties.
Follow us on Google News, Instagram, YouTube, Facebook,Whats App, and TikTok for latest updates