KARACHI-UNS:The Pakistan Stock Exchange (PSX) on Monday witnessed a historic surge following a ceasefire agreement between Pakistan and India, and an approval granted by the International Monetary Fund (IMF) for release of a loan tranche to the South Asian country.
The KSE-100 index gained whopping 9,475.49 points to hit 116,650.12 points with a positive change of 8.84 percent, forcing the suspension of the market for one hour.
During the opening session, the stock market also climbed to 117,104.11 points as investors seemed confident following the positive developments.
Experts have attributed the historic surge to a powerful convergence of positive developments with the most significant catalyst is the ceasefire agreement between India and Pakistan.
The announcement for the ceasefire came after weeks of tension following the Pahalgam attack, which had triggered aggressive selloffs and fueled widespread investor concerns.
Furthermore, Pakistan has secured a crucial financial lifeline with the IMF’s approval of a $1 billion disbursement under the Extended Fund Facility (EFF) and a $1.4 billion Resilience and Sustainability Facility (RSF).
These developments coincided with the State Bank of Pakistan’s (SBP) decision to reduce the policy rate by 100bps to 11%.
