Karachi: The Pakistan Stock Exchange (PSX) saw a historic rise on Monday. The market jumped by over 9 per cent in one day. This came after India and Pakistan agreed to stop all military actions. The KSE-100 index rose by 9,929.48 points in early trade. It reached 117,104.11 points from the last close of 107,174.63 points.
This is the biggest one-day rise in recent times. Due to the large jump, trading was stopped for one hour. This pause helped control too much market movement.
Peace Deal Lifts Investor Sentiment
Tensions between India and Pakistan had risen last week. This happened after India's strikes on terror sites in Pakistan and Pakistan-occupied Kashmir (PoK). In return, Pakistan also took military steps. As a result, the PSX had dropped by around 6.5 per cent last week.
On Saturday, both countries reached a peace understanding. They agreed to stop military actions by land, air, and sea from 5 pm onwards. This step brought relief to investors.
Fatima Bucha from AKD Securities said that the peace news gave a big boost to market confidence.
Other Factors Also Help Market Rise
Along with the peace move, other good news also helped the stock market. The State Bank of Pakistan recently cut interest rates. This makes borrowing easier and helps business activity grow.
Also, the International Monetary Fund (IMF) approved a USD 1 billion loan for Pakistan. This gave more confidence to investors about the country's economy.
Samiullah Tariq from Pak Kuwait Investment Company said that US President Donald Trump’s positive comments about trade with Pakistan also helped boost investor trust.
Market Back to Normal
By mid-afternoon, the KSE-100 index stood at 116,857 points. This was a gain of 9,682.37 points, or 9.03 per cent. After days of fear and market losses, investors are now hopeful again. Peace and economic support have helped bring the PSX back on track.
(With agency inputs)
