KSE-100 index: A Very Good Morning

May 11, 2025 (MLN): The Pakistan Stock Exchange kicked off the week on a bullish note, with the benchmark KSE-100 Index surging by around 9,929 points in early trade on Monday, marking a striking 9.2% gain.

By 9:35am, trading at the Pakistan Stock Exchange (PSX) was halted as the benchmark index surged to 116,650.12 points.

This strong upward momentum follows a turbulent week, during which the market witnessed a sharp sell-off driven by escalating geopolitical tensions in the region, particularly between Pakistan and India.

 This strong surge is on the back of strengthening investors' sentiments on the ceasefire agreement between Pakistan and India and the International Monetary Fund’s (IMF) approval of $2.4 billion in funding.

The truce, easing regional tensions, has coincided with positive developments on the economic front. The IMF Executive Board approved the immediate disbursement of a $1bn tranche under the Extended Fund Facility (EFF), while also greenlighting an additional $1.4bn for climate resilience support.

This strong rebound was greater than expected as the Analysts fraternity was hopeful that the KSE-100 Index to have a rally of 3,000 to 4,500 points, equivalent to a 3.5% to 4.5% gain, right from the opening bell, with a majority of stocks expected to trade in the green.

Not to forget that due to border tensions, the local bourse could not celebrate the recent cut of 100 bps by MPC. 

It is important to note that the KSE-100 Index, which had hit a peak of 118,430.35 points on April 22, declined sharply to 102,635.25 points by May 9, 2025, witnessing a loss of over 15,800 points, or roughly 13.33%.

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