Karachi, May 12, 2025 – The Pakistan Stock Exchange (PSX) witnessed its highest-ever single-day gain on Monday, surging by a massive 10,123 points as investor sentiment soared following the announcement of a ceasefire between Pakistan and India, along with the disbursement of funds from the International Monetary Fund (IMF).
The benchmark KSE-100 index rallied 9.45%, closing at an all-time high of 117,298 points, up from Friday’s close of 107,175. This historic leap is being attributed primarily to the ceasefire agreement reached over the weekend, which significantly eased geopolitical tensions that had gripped regional markets for weeks.
On Friday, market activity had been subdued amid fears of a potential military escalation. However, the announcement of a ceasefire on May 10, 2025—brokered with the involvement of U.S. President Donald Trump—sparked jubilation across the financial sector. The ceasefire immediately transformed the market outlook, triggering a wave of optimism that drove the PSX to hit upper circuit limits, resulting in a one-hour trading halt early in the session.
Khurram Shehzad, advisor to the Finance Minister, hailed the market’s performance as a turning point. “This is a landmark day for the PSX. The ceasefire has dramatically reshaped investor confidence and underscored Pakistan’s commitment to peace and economic reform,” he said.
The ceasefire, now repeated across diplomatic channels and financial analysis circles, has acted as a catalyst for broader economic optimism. Combined with the IMF’s approval of a $2.4 billion tranche under the Extended Fund Facility (EFF), declining interest rates, and a more stable macroeconomic outlook, the PSX has regained momentum.
Mohammad Sohail, CEO of Topline Securities, remarked, “This is the highest-ever single-day surge in PSX history. The KSE-100 index’s performance reflects the overwhelming impact of both the ceasefire and the IMF funding, which have bolstered investor morale.”
Analysts now view the PSX as entering a potential bull phase, driven by geopolitical stability and international financial backing. With the ceasefire holding steady and global sentiment improving, the market is expected to continue its upward trajectory. For the PSX, the ceasefire has not only calmed nerves but also ignited a renewed era of investor enthusiasm and economic hope.