Karachi, May 12, 2025 – The Pakistan Stock Exchange (PSX) witnessed a historic surge on Monday morning, driven by jubilant investor sentiment following the announcement of a ceasefire agreement between Pakistan and India.
This landmark development, seen as a significant de-escalation in regional tensions, ignited a wave of optimism across financial markets.
The benchmark KSE-100 index at the PSX skyrocketed by a staggering 8.84%—an increase of 9,475 points—within minutes of the market opening. Trading was suspended at 9:37 AM after hitting the upper circuit breaker, halting at 116,650 points. This marked a dramatic leap from Friday’s closing figure of 107,175 points, setting a new single-day record in the history of the PSX.
Khurram Schehzad, advisor to the Finance Minister, highlighted the market’s historic performance, noting, “This is a record-breaking day for PSX—surpassing even the most significant single-day declines seen previously. The ceasefire has transformed investor sentiment.”
The ceasefire announcement is being widely credited for sparking renewed investor confidence. Experts point to Pakistan’s balanced diplomatic posture, supported by the IMF’s recent approval of a $2.4 billion tranche, declining interest rates, and overall economic stability as key contributing factors. Additionally, the potential resolution of the U.S.-China tariff dispute could have positive spillover effects for the region.
Market analysts suggest that the PSX is now benefiting from stronger negotiating leverage and enhanced global confidence. Mohammad Sohail, CEO of Topline Securities, remarked, “The KSE-100 index’s 9.3% surge at the open reflects the market’s response to both the ceasefire and the weekend IMF deal. These twin developments have greatly uplifted investor morale.”
The PSX confirmed that due to a 5% jump in the KSE-30 index, a regulatory market halt was triggered as per PSX rules, leading to the suspension of all equity-based trading until 10:37 AM.
With the ceasefire in place, a more stable macroeconomic outlook, and robust international support, the PSX appears poised for sustained growth, signaling optimism for Pakistan’s economic trajectory. The ceasefire has not only cooled geopolitical tensions but has also ignited investor enthusiasm, making it a pivotal turning point for the PSX.