The benchmark KSE-100 Index surged past the 120,000 mark, gaining nearly 2,800 points during the opening minutes of trading on Tuesday.

By 9:30am, the index was at 120,067.12, reflecting an increase of 2,769.39 points or 2.36%. Topline Securities reported that this optimism was largely driven by the surprise ceasefire announced on May 10, facilitated by the United States.

Additionally, the International Monetary Fund’s approval of the first review of the Extended Fund Facility (EFF) program, which unlocked a $1 billion tranche, further boosted investor sentiment.

On Monday, the stock market rebounded strongly, driven by a combination of positive developments, including the ceasefire agreement and the IMF’s crucial funding approval. The KSE-100 Index posted a record gain of 10,123 points, closing at 117,297.73.

In contrast, India’s benchmark indexes opened lower on Tuesday, following their best day in over four years amid a fragile ceasefire with Pakistan. The Nifty 50 was down 0.52% at 24,784.95, while the BSE Sensex dropped 0.64% to 81,900.2 as of 9:25 AM IST. Eight of the 13 major sectors reported losses at the open, although small-caps and mid-caps traded about 0.2% higher.

On Monday, the Nifty 50 and Sensex experienced a nearly 4% rally after the ceasefire agreement, but analysts expect the benchmarks to consolidate following this surge.

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Global investor sentiment remains positive, buoyed by an agreement between the U.S. and China to temporarily reduce mutual tariffs and collaborate to prevent disruption to the global economy.

MSCI’s Asia ex-Japan index rose 0.3% on Monday, following a 2% increase in the previous session amid trade optimism.

Background

The recent ceasefire between Pakistan and India has begun to positively influence the country’s economy, as evidenced by a notable rise in the Pakistan Stock Exchange at the start of the trading week.

On Monday, investor confidence surged with the KSE-100 Index recording an impressive increase of 10,000 points, reaching 117,100 points. Trading was briefly halted after the index experienced a 5% rise. However, on May 8, the PSX faced a strong downturn as investor sentiment dropped, with the KSE-100 Index falling by over 6,948 points to close at 103,060 points.

Despite the fluctuations, the Pakistan Stock Exchange started the week on a bullish note, witnessing a significant surge in trading. The KSE-100 Index soared by more than 1,000 points right from the opening, climbing to 116,500 points according to the latest reports.