Bullish momentum continued at the Pakistan Stock Exchange (PSX) as investors celebrated the ceasefire between India and Pakistan. The benchmark KSE-100 Index crossed the 120,000 level amid a gain of nearly 2,800 points during the opening minutes of trading on Tuesday.
At 9:30am, the benchmark index was hovering at 120,067.12 level, a gain of 2,769.39 points or 2.36%.
“The unwavering optimism was led by immediate/surprise ceasefire announced between Pakistan and India with mediation from United States of America on Saturday, May 10th 2025,“said Topline Securities in a report.
“Along with this, approval of the first review of Extended Fund Facility (EFF) programme by IMF, unlocking $1 billion tranche also boosted investors sentiments.”
In a key development, Finance Minister Muhammad Aurangzeb in an interview with Reuters on Monday said that the federal budget for the next fiscal year, starting July, will be finalised within the next three to four weeks, with scheduled budget talks with the IMF to take place from May 14-23, he said.
On Monday, the stock market staged a strong comeback, driven by a “convergence of positive developments” including a ceasefire agreement between India and Pakistan, as well as the IMF’s approval of crucial funding.
The benchmark KSE-100 Index gained 10,123 points, the highest-ever gain, to settle at 117,297.73.
Meanwhile, India’s benchmark indexes opened lower on Tuesday after logging their best day in more than four years, following a fragile ceasefire with Pakistan over the weekend.
The Nifty 50 was down 0.52% at 24,784.95 and the BSE Sensex lost 0.64% to 81,900.2 as of 9:25am IST.
Eight of the 13 major sectors logged losses at the open. The broader small-caps and mid-caps traded about 0.2% higher each.
The Nifty 50 and Sensex soared nearly 4% in a broad-based relief rally on Monday after India and Pakistan reached and held a ceasefire following days of cross-border clashes.
According to analysts, the benchmarks will likely consolidate after Monday’s rally.
Global investor sentiment is upbeat after the U.S. and China agreed to temporarily slash harsh reciprocal tariffs and cooperate to avoid rupturing the global economy.
MSCI’s Asia ex Japan index traded 0.3% higher on Monday, following a 2% jump in the previous session amid trade optimism.
This is an intra-day update
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