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The KSE 100 rallied more than 9% to 117,104 points, after closing Friday’s session 3.5% higher. Pakistani stocks had been under pressure, and trading was halted for an hour on Thursday after the benchmark index crashed 7.2% amid panic triggered by India’s Operation Sindoor.
So far in May, the KSE 100 index is down 3.4%, after a 5.5% decline in April, driven by escalating India-Pakistan tensions following the April 22 terrorist attack on tourists in Pahalgam, Kashmir.
Meanwhile, India’s Sensex and Nifty also surged more than 2.7% on Monday. However, analysts cautioned that any fresh violations of the ceasefire by Pakistan could undermine the current bullish sentiment.
“India’s efforts to negotiate trade deals will strengthen global business links and help it boost exports, bringing in steady foreign capital and enhancing competitiveness. Coupled with balanced global relationships and strong partnerships, this creates a relatively stable investment destination,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.
“The ceasefire between India and Pakistan has paved the way for a sharp market rally. The key driver will be sustained FII buying, which continued for sixteen straight days—except last Friday when tensions spiked. Domestic macros like high GDP growth expectations, a revival in FY26 earnings, and declining inflation and interest rates support a renewed market uptrend,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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https://economictimes.indiatimes.com/markets/stocks/news/pakistans-benchmark-share-index-opens-up-over-9-as-ceasefire-with-india-holds/articleshow/121096825.cms
