May 13, 2025 – The Pakistan Stock Exchange (PSX) rallied on Tuesday, gaining over 1,000 points as investor sentiment soared following easing tensions between Pakistan and India.
The KSE-100 index opened with a sharp rise of 2,769 points, reaching 120,067.12 from the previous close of 117,297.73. By 3pm, the index stood at 118,605.98, reflecting a 1.12% increase. It eventually closed at 118,575.88, marking a gain of 1.09% or 1,278.15 points.
This bullish run followed Monday’s record 9% surge, sparked by a ceasefire between the nuclear-armed neighbours and diplomatic intervention from the United States. President Donald Trump’s pledge to support trade between India and Pakistan further lifted the market.
Awais Ashraf, director of research at AKD Securities, highlighted rising energy stocks driven by expectations of a Rs1.5 trillion injection to address circular debt. He also noted that investors anticipate an International Monetary Fund (IMF) tranche release and a policy rate cut below 12%.
Yousuf M Farooq of Chase Securities observed that improving macroeconomic indicators and a possible cut in super tax could drive corporate earnings upward. He predicted a rerating of the market’s price-to-earnings ratio in response to ongoing economic stability.
Samiullah Tariq from Pak Kuwait Investment Company noted that the PSX continued its upward momentum from Monday. He attributed the rise to a combination of lower interest rates, IMF approval, corporate results, and budget optimism.
The PSX has clearly reflected renewed investor trust, with strong buying driven by both geopolitical calm and economic reform hopes.
