The benchmark KSE-100 index surged more than 9 percent in intraday trading, climbing 9,928 points to reach 117,104.11 — marking the highest single-day point gain on record from the previous close of 107,174.63.
This sharp upward momentum was driven by two key developments: the announcement of a ceasefire between Pakistan and India, and the International Monetary Fund’s (IMF) approval of a vital loan tranche over the weekend.
Investor sentiment turned overwhelmingly positive, prompting strong buying across the board. The surge triggered a temporary one-hour trading halt — a standard circuit breaker to curb excessive volatility — before trading resumed.
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The agreement followed heightened tensions and market jitters sparked by the Pahalgam attack, which had previously led to aggressive sell-offs.
Adding to the optimism, U.S. President Donald Trump issued a supportive statement over the weekend, expressing a willingness to facilitate dialogue on the Kashmir issue and encourage greater trade cooperation between India and Pakistan.
In support of this improving economic landscape, the brokerage noted, “Pakistan’s exports to the U.S. have reached $4 billion in FY25TD, while imports stand at $1.5 billion — creating a robust trade surplus of $2.5 billion.”
Concurrently, Pakistan secured a critical financial boost with the IMF s approval of $1 billion under the Extended Fund Facility (EFF) and an additional $1.4 billion through the Resilience and Sustainability Facility (RSF).
These approvals not only provide essential funding but also reflect global confidence in Pakistan’s reform agenda, helping to reinforce investor trust amid macroeconomic stabilization.
According to reports, from April 22 to May 8, the KSE-100 index had dropped 12.6%, culminating in the steepest intraday point decline in its history. However, a rebound of 3.5% on May 9 hinted that investor confidence was already beginning to return — a trend that has now gained significant momentum.
