The Karachi Stock Exchange (KSE100) index rallied sharply on Monday, climbing 9.26% or 9,929 points to close at 117,104.12, marking a strong recovery after two consecutive sessions of steep declines. The surge follows easing geopolitical tensions between India and Pakistan after both countries agreed to a ceasefire.
The rebound comes after the index was halted for two straight trading sessions following a cumulative drop of over 12%, triggered by escalations along the border and investor panic. The market had hit its lower circuit limit during those sessions.
India and Pakistan’s Directors General of Military Operations (DGMOs) spoke on May 10 and agreed to halt all military activity from 5 PM IST. This was followed by a joint briefing from the Indian Armed Forces on May 11, where DGMO Lt Gen Rajiv Ghai confirmed that over 100 terrorists were neutralized during India’s Operation Sindoor, which targeted terror camps in Pakistan and Pakistan-occupied Kashmir.
India clarified that its actions were aimed at terror infrastructure and not the Pakistani military. The easing of hostilities and diplomatic signals of de-escalation have renewed investor confidence in the region.
Meanwhile, India’s benchmark Nifty 50 index also rose nearly 700 points to trade at 24,704, reflecting positive sentiment across South Asian markets.
