Pakistan Stock Exchange surges over 1,000 points amid ceasefire optimism
ISLAMABAD: The Pakistan Stock Exchange (PSX) gained over 1,000 points on Tuesday, driven by investor optimism over ceasefire talks between Pakistan and India boosting regional stability, analysts said.
The KSE-100 index gained 2,769 points to reach 120,067.12 during intraday trading before settling at 118,575.88, up by 1,278.15 points or 1.09 percent from the previous close of 117,297.73.
Pakistan's stocks had rallied after US President Donald Trump on Saturday announced a ceasefire between nuclear-armed neighbors Pakistan and India.
Both states had exchanged missile, drone and artillery strikes last week amid surging tensions.
'Stocks closed higher as investors weigh Pak-India ceasefire talks fostering stability and the foreign minister's assurance on thin fiscal impact of conflict,' Ahsan Mehanti, the Chief Executive Officer of Arif Habib Commodities, told Arab News.
Pakistan Finance Minister Muhammad Aurangzeb had also told Reuters in an interview on Monday that the conflict would not have a large fiscal impact on Pakistan. He described the standoff as a 'short duration escalation' with minimal fiscal impact, saying it can be 'accommodated within the fiscal space which is available to the government of Pakistan.'
Mehanti added that rupee stability, upbeat global equities, and a surge in global crude oil prices also played a catalytic role in the bullish close at the PSX.
Head of Intermarket Securities Raza Jafri highlighted that the KSE-100 was holding its levels following yesterday's massive rise.
On May 12, Pakistani stocks rose more than nine percent, the highest single-day gain in decades, according to analysts, following a ceasefire with India and the approval of a $1 billion tranche by the International Monetary Fund (IMF), which Pakistan is expected to receive today as part of a larger $7 billion bailout agreement.
'The energy sector continues its rebound — on hopes of circular debt clearance — while news reports of a possible construction package (low-income housing units and mortgage financing) saw the Cement sector rally,' Jafri added.
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