KARACHI, PAKISTAN: The Pakistan Stock Exchange (PSX) witnessed a remarkable surge on Thursday, as news of a ceasefire between Pakistan and Afghanistan sparked an extraordinary wave of investor optimism. The benchmark KSE-100 Index soared by 2,436 points, closing at 166,242, marking one of the strongest single-day rallies in recent months.
Market analysts attributed the bullish sentiment to renewed hopes for regional peace and stability, which could pave the way for improved cross-border trade and investment flows. The development came as a welcome relief for investors, who had been grappling with political uncertainty and cautious trading in recent sessions.
Banking and financial stocks led the charge, with Habib Bank Limited, United Bank Limited, Bank of Punjab, National Bank of Pakistan, and Askari Bank collectively contributing nearly 1,000 points to the overall index gain. The buying momentum also extended to cement, energy, and technology sectors, which benefited from the improving sentiment.
Although trading volume fell by 25% to 1.47 billion shares, the overall traded value surged 40% to Rs 51.8 billion — signaling strong institutional interest and renewed confidence in market stability.
Market watchers believe the rally is not just a reaction to the ceasefire but also reflects an improving macroeconomic picture, following Pakistan’s recently reported $110 million current account surplus for September. Together, these developments have injected a sense of optimism into an otherwise cautious market outlook.
Experts, however, warn that sustaining this momentum will depend on consistent policy support, lasting regional peace, and fiscal discipline. If these factors align, Pakistan’s capital market could enter a new phase of resilience and global investor appeal.
This story has been reported by PakTribune. All rights reserved.