The Pakistan Stock Exchange (PSX) experienced a dramatic surge today, with the benchmark KSE-100 index skyrocketing nearly 10,000 points in early trading. 

This represents the highest single-day point increase ever recorded on an intraday basis, pushing the index to 117,104.11 points—a more than 9% jump from the previous close.

The rally is attributed to two key developments: a ceasefire agreement between India and Pakistan, and the International Monetary Fund’s (IMF) approval of a $1 billion disbursement under the Extended Fund Facility (EFF) and a $1.4 billion Resilience and Sustainability Facility (RSF). The improved geopolitical climate and positive economic outlook spurred significant buying activity.

The rapid increase triggered a temporary one-hour trading suspension to manage volatility, but trading has since resumed.

The IMF’s dual approval provides crucial financial support and signals international confidence in Pakistan’s reform agenda, further bolstering investor confidence.  This positive news is compounded by the State Bank of Pakistan’s recent 100-basis-point cut to the policy rate, now at 11%, reflecting easing inflationary pressures and expected to boost equity valuations. 

The KSE-100 index had fallen 12.6% since the April 22nd Pahalgam attack, experiencing its largest ever intraday point drop last week before a 3.5% rebound on May 9.