Historic Surge: PSX's Record-breaking Rally Amid Eased Tensions

In a remarkable turn of events, the Pakistan Stock Exchange (PSX) saw its sharpest single-day gain in 26 years on Monday, recording an over nine percent increase in trading. This unprecedented surge was driven by easing geopolitical tensions between India and Pakistan, paired with an anticipated loan tranche from the International Monetary Fund (IMF).

Geopolitical stability appeared to return as the KSE-100 index soared during intraday trading, opening with a 9,929.48 points leap, reflecting a 9.26% boost, to reach 117,104.11 points from a previous close of 107,174.63 points. The market was briefly suspended to manage the volatility.

By mid-afternoon, the index showed a significant 9.03% gain, settling at 116,857.00 points, and finally closing at 117,297.73 points, up 9.45% from the previous session. This marked a historic gain, more than double the previous highest point surge recorded in November 2024. Key factors included geopolitical stability, an expected IMF loan, and potential increased US trade, bolstering investor confidence.

(With inputs from agencies.)