Record Surge in Pakistan Stock Exchange as Tensions Ease

The Pakistan Stock Exchange (PSX) witnessed an unprecedented surge on Monday, recording a nine per cent increase, attributed to a renewed understanding between India and Pakistan to cease military actions. The geopolitical detente drove investor confidence, resulting in remarkable gains during intraday trading.

The KSE-100 index displayed robust performance, opening with a gain of 9,929.48 points or 9.26 per cent, advancing from the previous close to reach 117,104.11 points. This surge follows a dip last week, when the exchange lost 6.5 per cent amid escalating tensions.

The rally was further buoyed by the State Bank's recent interest rate cut and the International Monetary Fund's (IMF) approval of a USD 1 billion loan tranche, enhancing market sentiment. Additionally, statements by US President Donald Trump on increasing trade with Pakistan contributed to the positive outlook, emphasized by industry experts.

(With inputs from agencies.)