KARACHI, May 13, 2025 — The Pakistan Stock Exchange (PSX) continued its bullish run on Tuesday, with the benchmark KSE-100 Index breaching the 120,000-point milestone during intra-day trading — a threshold last crossed on April 4.
The rally was powered by a combination of positive diplomatic and economic developments, including the recent ceasefire with India and the International Monetary Fund’s (IMF) approval of a major financial support package.
By mid-day, the KSE-100 had surged 2,769.39 points, or 2.36%, reaching an intraday peak of 120,067.12, up from Monday’s close of 117,297.73. This follows a historic rally the previous day, as investors welcomed signs of geopolitical de-escalation and economic stabilization.
According to PSX trading data, the market saw a volume of 140.7 million shares, with trades valued at Rs17.07 billion.
The renewed investor confidence is largely attributed to a surprise ceasefire agreement with India, accompanied by US President Donald Trump’s offer to mediate in the Kashmir dispute, easing fears of further conflict. Additionally, Trump’s backing for enhanced bilateral trade added further market optimism.
The IMF’s approval of a $2.4 billion assistance package — including $1 billion under the Extended Fund Facility (EFF) and $1.4 billion from the Resilience and Sustainability Facility (RSF) — served as another major catalyst for the surge.
On Monday, the market staged its largest single-day gain, with the KSE-30 index climbing over 5% within five minutes, prompting a brief trading pause. However, investor enthusiasm remained undeterred, and the KSE-100 quickly rebounded, reflecting a strong upward trajectory.
After a week of market unease driven by regional instability, the combination of diplomatic breakthroughs and robust international financial backing has reignited investor confidence, turning a gloomy outlook into a vibrant resurgence on the trading floor.
As economic and political narratives align more favorably, market watchers believe this momentum could persist, provided macroeconomic stability holds and geopolitical tensions remain subdued.
