The losses of the last week were unprecedented but trading session at the Pakistan Stock Exchange (PSX) on Monday was a historical unmatch as share prices skyrocketed by over record 10,000 points amid reports of Pakistan-India ceasefire is holding, reported 24NewsHD TV channel.
Within 40 minutes of the opening of trading, the PSX’s benchmark KSE-100 index blasted to 117,104 points surging by 9,920 points or 8.4 percent. The historic surge was consolidated to over 10,000 points by the close of business with index soaring to 117,297.73 points up by 10,123.10 points or 8.63 percent.
Earlier, the unparallel surge in prices prompted PSX officials to suspend the trading for one hour. After resumption of trading, the buying remained robust. The investors were going nuts buying everything that was coming in their way.
The strength of the market could be judged from the fact that out of the 461 companies traded, share prices of 404 companies were up and of 26 were down while 31 remained unchanged.
Indian forces had launched aggression against Pakistan last week resulting in dozens of civilian deaths. Pakistan had responded massively on Saturday morning targeting 26 military facilities in India.
"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 programme 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.
"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.
During last week, the stock market had plunged over nine percent in four days after bears dominated bulls amid escalating geopolitical tensions with India which spooked investors.
On Thursday, the benchmark index lost over six percent of its value in intraday deals, sparking a temporary trading halt. In the last four trading sessions, the KSE-100 index lost nearly 9.5 percent of its value.
Meanwhile, since April 22, the KSE-100 Index had tumbled 12.5 percent.
Reporter Kavish Memon