The Pakistan Stock Exchange (PSX) surged by a historic 9.45% on May 12, 2025, marking its largest single-day gain ever. This came in response to a ceasefire agreement between Pakistan and India, announced by U.S. President Donald Trump after several days of cross-border tensions.
The KSE-100 index jumped over 10,000 points to close at 117,297.73, triggering a temporary trading halt due to the sharp rise. Investors responded positively to the de-escalation, with sentiment further boosted by a recent interest rate cut and the release of a $1 billion tranche by the International Monetary Fund (IMF).
Uplifting remarks from President Trump about increasing trade with Pakistan also fueled market optimism. The PSX’s rally reflected relief over diplomatic progress, with Pakistan’s air force praised for its deterrent role during the crisis.
Looking ahead, analysts remain cautiously optimistic, with focus turning to the upcoming federal budget on June 2. Continued political stability and economic reforms will be key to sustaining market momentum.
The PSX posted a record 9.45% gain on May 12, 2025, after a ceasefire between Pakistan and India. Investors welcomed de-escalation, IMF support, and U.S. trade signals, boosting market confidence.
PSX, Pakistan-India Ceasefire, Investor Confidence
