The Pakistan Stock Exchange (PSX) recorded its highest-ever single-day gain on Monday, surging by 10,123 points. The rally came as geopolitical tensions between Pakistan and India cooled, indebted to a surprise ceasefire declaration that astonished markets and became the reason for stimulating fierce buying.
The benchmark KSE-100 Index has increased by 9.45%, closing at 117,297.73 points, up from 107,174.64 in the previous session. This marks the biggest rise in the index since its start.
Within just five minutes of trading, the market was up over 9.26%, triggering an automatic 1-hour halt as per PSX rules.
The halt is specifically created to stabilize trading if the KSE-30 Index moves 5 percent or more for five consecutive minutes.
Market analysts attributed the record-breaking rally to multiple positive catalysts. Ahsan Mehanti, from Arif Habib Ltd, noted that the ceasefire was the major factor, while additional optimism was sparked by US President Donald Trump’s offer to mediate the Kashmir issue and accelerates trade in the region.
Adding to the bullish sentiment were global factors like a stock market rally worldwide, rising oil prices, and a US-China trade agreement. Domestically, IMF’s approval of financial disbursements, stable Pakistani rupee, and a surprise interest rate cut by the State Bank provided solid footing for investor confidence.
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According to Topline Securities, the surge was historic — the highest one-day jump in 26 years. This rally follows a tough period where the market had shed 12.5% over 12 sessions after the Pahalgam incident on April 22.
Unilever Pakistan Foods led the gainers, soaring Rs 904.44 to Rs 22,877.32, followed by PIA Holding Company Ltd. B, which gained Rs 773.52 to Rs 8,508.75.
Volume-wise, K-Electric Ltd dominated with over 114 million shares traded, followed by At-Tahur Ltd with 75 million shares. In total, 732 million shares were traded, with 405 companies closing in the green, reflecting widespread optimism across the board.
With easing geopolitical stress and strengthening economic indicators, Monday’s rally has offered much-needed relief to Pakistan’s investors and sent a powerful signal of resilience in the country’s capital market.