PSX Soars as Investors Welcome Ceasefire

The Pakistan Stock Exchange (PSX) experienced a continuation of positive momentum as investors responded favorably to the ceasefire accord between India and Pakistan. The KSE-100 Index concluded the day with an increase of nearly 1,300 points on Tuesday.

Trading at the stock market commenced on an optimistic note, with the KSE-100 Index ascending by approximately 2,800 points, achieving an intra-day peak of 120,067.12.

However, market analysts noted that this surge was transient, as investors engaged in profit-taking activities.

Buying activity resurfaced during the concluding hours of the trading session, resulting in the benchmark index settling at 118,575.88 at the close, reflecting a gain of 1,278.15 points, equivalent to 1.09%.

In a noteworthy development, Finance Minister Muhammad Aurangzeb stated in a recent interview that the upcoming fiscal year’s federal budget, set to commence in July, is expected to be finalized within the subsequent three to four weeks. Budget discussions with the IMF are scheduled from May 14-23.

The stock market exhibited a robust resurgence recently, propelled by a combination of encouraging factors, notably the ceasefire agreement between India and Pakistan, coupled with the IMF’s endorsement of vital funding.

The KSE-100 Index recorded a substantial gain of 10,123 points, marking its highest-ever increase, ultimately settling at 117,297.73.

Concurrently, Indian benchmark indexes initiated trading on a lower note on Tuesday, subsequent to registering their most favorable day in excess of four years, subsequent to a tenuous ceasefire with Pakistan over the weekend.

The Nifty 50 declined by 0.52% to reach 24,784.95, whereas the BSE Sensex experienced a decrease of 0.64%, settling at 81,900.2 as of 9:25 am IST.

At the opening bell, eight out of the thirteen primary sectors documented losses. The broader small-cap and mid-cap segments exhibited gains of approximately 0.2% each.

The Nifty 50 and Sensex experienced a substantial surge of approximately 4% in a widespread relief rally, subsequent to India and Pakistan achieving and maintaining a ceasefire following days of cross-border conflicts.

Market analysts suggest that the benchmarks are poised for consolidation in the aftermath of the recent rally.

Global investor sentiment remains optimistic following the accord between the U.S. and China to provisionally curtail reciprocal tariffs and collaborate to avert disruptions to the global economy.

The MSCI’s Asia ex Japan index reflected a 0.3% increase, subsequent to a 2% upswing in the preceding session amidst trade optimism.