Peaceful Resolve Propels Pakistan Stock Exchange to Historic Surge

On Monday, the Pakistan Stock Exchange (PSX) experienced a remarkable nine percent increase in trading activity, coinciding with a de-escalation of tensions between India and Pakistan. The KSE-100 index soared to 117,104.11 points, buoyed by an agreement between the two countries to cease military actions.

After a week marked by conflict and uncertainty, which saw the PSX tumble by nearly 6.5 percent, investor sentiment turned optimistic. This newfound confidence was partly attributed to an interest rate cut by the State Bank of Pakistan and the International Monetary Fund's approval of a USD 1 billion tranche.

Furthermore, US President Donald Trump's comments on enhancing trade relations with Pakistan provided additional impetus. Despite a brief trading suspension to manage volatility, the market appeared poised for continued stability.

(With inputs from agencies.)