The Pakistan Stock Exchange (PSX) opened the week on a strong note, with the benchmark KSE-100 index surging over 900 points in early trading on Monday. The index climbed 941.79 points (0.82%) to 116,411.13, rebounding from last week’s volatility fueled by India-Pakistan tensions.
Analysts attributed the rally to robust corporate earnings from key companies, a stable current account, and easing geopolitical concerns. Awais Ashraf of AKD Securities said, “Better-than-expected financial results from major firms boosted investor confidence.” Yousuf M. Farooq of Chase Securities added that low inflation and a manageable real effective exchange rate (REER) of 101 further supported the uptrend.
The market had slumped last week after India suspended the Indus Waters Treaty (IWT) following the Pahalgam attack. However, the absence of further escalation over the weekend reassured investors. Mohammed Sohail of Topline Securities noted that the “dust settling down” between the two nations aided the recovery.
Initially, the KSE-100 jumped over 1,100 points, peaking at 116,658.94, but later pared gains due to profit-taking. Samiullah Tariq of Pak-Kuwait Investment Company cited “normal market correction” after the sharp rise.
Global factors, including optimism around US-China trade talks and Pakistan’s positive engagements at the IMF and World Bank meetings, also contributed to the bullish sentiment. However, analysts caution that sustained growth depends on continued stability in domestic and regional conditions. With expectations of potential interest rate cuts, the market may see further upside if geopolitical risks remain subdued.
