Pakistan Stock Exchange Soars Over 1,000 Points Amid Ceasefire Optimism

The Pakistan Stock Exchange (PSX) experienced a significant surge on May 13, 2025, with the benchmark KSE-100 index climbing over 1,000 points. This rally was primarily driven by renewed investor confidence following the announcement of a ceasefire between Pakistan and India.

—

Market Performance

The KSE-100 index opened with a substantial gain of 2,769 points, reaching 120,067.12 from the previous close of 117,297.73. By the end of the trading session, the index settled at 118,575.88, marking an increase of 1,278.15 points or 1.09% .

—

Factors Influencing the Surge

1. Ceasefire Announcement: The primary catalyst for the market’s positive movement was the ceasefire agreement between Pakistan and India. This development alleviated geopolitical tensions, leading to increased investor optimism .

2. IMF Loan Approval: The International Monetary Fund’s approval of a $2.4 billion loan package under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) provided a significant boost to investor sentiment .

3. Monetary Easing: The State Bank of Pakistan’s recent decision to cut interest rates contributed to the bullish trend, making equities more attractive to investors .

4. Global Market Trends: A rally in global equity markets and rising crude oil prices also played a role in enhancing investor confidence in the local market .

—

Sectoral Performance

The positive momentum was broad-based, with significant gains observed across various sectors:

Banking and Financial Services: Benefited from improved economic outlook and monetary easing.

Energy: Rising global oil prices positively impacted energy stocks.

Manufacturing and Industrials: Anticipation of increased industrial activity post-ceasefire boosted these sectors.

—

Investor Sentiment

Analysts noted that the convergence of geopolitical stability and favorable economic indicators led to a resurgence in investor confidence. The market’s performance suggests a positive outlook for the near term, provided that the current conditions persist.

—

Conclusion

The PSX’s significant gain reflects the market’s sensitivity to geopolitical developments and economic policies. Continued stability and prudent economic management are essential

Stock market :PSX climbs over1, 000 points upon Bost in investor sentiment to sustain this positive trajectory.

—