PSX soars over 10,000 points after Pakistan-India ceasefire, IMF disbursement

The Pakistan Stock Exchange (PSX) witnessed a sharp rally on Monday, fuelled by a combination of positive developments, including a ceasefire between Pakistan and India, and the International Monetary Fund’s (IMF) approval of a key financial package.

The benchmark KSE-100 Index surged by 10,123 points, marking the largest single-day gain in the exchange’s history. By the end of the trading session, the benchmark index closed at 117,297.73.

The index was up more than 9% from the previous close of 107,174.63 points during intra-day trading, prompting a temporary suspension of trading under market regulations triggered by extreme fluctuations.

Market analysts attributed the rally to improved investor sentiment following the announcement of a ceasefire between the two neighbouring countries, easing concerns over further escalation.

According to PSX data, the market had recorded over 345.3 million shares in volume with a turnover exceeding Rs21.98 billion.

The stock market endured a turbulent week, with the KSE-100 index plunging 6,939 points, or -6.1% week-on-week (WoW), to close near 107,000 amid rising geopolitical tensions between Pakistan and India.

Despite a partial rebound on Friday, the broader trend remained bearish.

Read more: https://tribune.com.pk/story/2545139/psx-sinks-6939-points-amid-tensions

On a day-on-day basis, the PSX witnessed a turbulent start to the week, with the benchmark KSE-100 index closing nearly flat amid rising tensions with India and State Bank's policy uncertainty. The index dipped steeply in early trading, falling 1,036 points. At close, the KSE-100 recorded a decline of just 11.70 points and settled at 114,102.

On Tuesday, the bourse closed lower as investor optimism over the State Bank's 100bps rate cut quickly gave way to concerns over escalating Pakistan-India tensions and Moody's warning about economic stability. The index recorded a decline of 534 points.

The market continued its downtrend and experienced a turbulent start to Wednesday's session, with the index nosediving over 6,500 points shortly after the open over heightened border tensions.

The market staged a robust recovery on Friday, where the benchmark index surged around 3,650 points, trimming some of Thursday's steep losses.

The market closed the week at 107,175, plunging 6,939 points, or -6.08% WoW. Sector-wise, negative contributions came from banks (1,637 points), exploration and production (905 points), cement (738 points), technology (508 points), and pharmaceuticals (436 points). Meanwhile, the sector that contributed positively was sugar (7 points).

In its review, Arif Habib Limited (AHL) wrote that the KSE-100 index remained mostly in the red during the outgoing week amid mounting geopolitical tensions and concerns over further escalation.