The Pakistan Stock Exchange (PSX) experienced a record-breaking rally on Monday, with the KSE-100 Index skyrocketing by 10,000 points in a single trading session, pushing the index to an all-time high of 117,173 points — one of the largest single-day increases in its history.
This massive gain prompted a temporary one-hour suspension in trading to manage the volatility, in accordance with market safety regulations.
Market analysts attribute the investor confidence to two major developments: the approval of a new loan tranche by the International Monetary Fund (IMF) and a ceasefire agreement between Pakistan and India, which followed a brief phase of heightened military tensions.
The surge came after a volatile week in which the KSE-100 Index dropped by 6,939 points, reflecting a 6.1% weekly loss, as geopolitical risks and economic uncertainty weighed heavily on the market.
Even though there was a modest recovery by Friday, the overall sentiment remained cautious. Earlier in the week, the index had opened with sharp losses, dropping over 1,000 points during Monday’s early trading hours before ending nearly flat. On Tuesday, optimism driven by the State Bank’s 100 basis point rate cut was overshadowed by renewed India-Pakistan tensions and Moody’s warnings on economic stability, leading to another 534-point decline.
