PSX Soars Nearly 10,000 Points After Pakistan-India Ceasefire and IMF Deal

The Pakistan Stock Exchange (PSX) launched into a historic rally on Monday morning, with the KSE-100 Index jumping by 9,929 points within the first two minutes of trade — a record-breaking surge driven by a surprise ceasefire announcement between Pakistan and India, and confirmation of a fresh IMF bailout package.

By 9:32 AM, the index touched 117,104 points, up 9.2%. Minutes later, it remained strong at 116,650 points, marking an 8.84% gain on the day.

The rally follows intense geopolitical developments over the weekend that ended in a rare moment of de-escalation between the two nuclear neighbors. Simultaneously, the government confirmed the signing of a new $3 billion IMF program, reassuring markets of a stabilizing macroeconomic outlook.

Trading Temporarily Halted as Circuit Breaker Tripped

Following the aggressive bullish wave, PSX triggered an upside market halt, its first in over two years. The exchange paused all trading for one hour as investor activity overwhelmed the system.

Reports indicated more than 47 million shares traded in the opening stretch, with trading value crossing Rs. 3 billion early in the session. The PSX website faced downtime as volume spiked, showing an under-maintenance message.

Market Snapshot – May 12, 2025

Active Stocks in Early Trade

Analysts React

Market experts believe the combination of geopolitical stability and fiscal support from the IMF has triggered a rare alignment of investor optimism.

“The ceasefire has lowered regional risk premiums, and the IMF deal offers a much-needed liquidity boost. This rally is logical and overdue,” said analyst Aamir Rizvi."

With PSX today setting new records, the financial community will be watching whether this momentum sustains in the days ahead.