Pakistan stocks surge after ceasefire with India
Pakistan stocks surged on Monday, with the benchmark index opening nine percent higher after a weekend ceasefire agreement with the country's arch rival India.
United States President Donald Trump announced the truce after four days of missile, drone and artillery attacks by India and Pakistan which killed at least 60 people and reached deep into the territory of both countries.
The benchmark KSE-100 Index opened at 117,104.11 points, up 9,929.48 points, or by 9.26 percent.
'Today's sharp surge in the stock market stems from a powerful convergence of bullish triggers that have swiftly turned investor sentiment from fear to opportunity,' Sana Tawfiq, head of research at Arif Habib Limited, Pakistan's largest securities brokerage, told AFP.
The jump also came after the International Monetary Fund (IMF) on Friday approved a loan program review for Pakistan, unlocking around $1 billion in much-needed funds and greenlighting a new $1.4 billion bailout despite India's objections.
'This positive shift is reinforced by the IMF's dual approvals, providing both critical funding and international validation of Pakistan's reform path,' Tawfiq added.
Trump, in a series of posts on social media announcing the ceasefire mediated by the US, pledged to increase trade 'substantially' with both nations.
'While optimistic, sustaining momentum requires ceasefire compliance, accelerated reforms, and managing global headwinds like oil prices,' senior economist Sanie Khan told AFP.
A policy rate cut by the country's central bank was also seen as a positive factor boosting equity flows.
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