Pakistan Stock Exchange (PSX) kicked off the week on a strong note, extending its winning streak on Monday as optimism swept through investors following the ceasefire agreement with Afghanistan and confirmation of a staff-level deal with the International Monetary Fund (IMF).
The benchmark KSE-100 Index climbed sharply, hitting an intraday high of 165,348.04 points, up 1,541.83 points or 0.94% from the previous close of 163,806.21. The index also touched a low of 164,281.95 points during the session but maintained a steady upward trajectory throughout the day.
“Bullish activity was witnessed amid reports of a ceasefire in cross-border conflict with Afghanistan and the IMF staff-level deal for the release of the IMF tranche,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities. “Surging global equities and speculation during the earnings season also played a key role in driving market optimism,” he added.
Investor sentiment brightened after Pakistan and Afghanistan agreed to an immediate ceasefire during peace talks in Doha — a major diplomatic breakthrough confirmed by Defence Minister Khawaja Muhammad Asif. Both sides are expected to resume discussions in Istanbul on October 25 to solidify the peace framework. The development follows a week of intense border clashes, described as the most serious since the Taliban’s 2021 takeover.
RELATED: IMF cannot impose conditions against Pakistan’s national interest, asserts Aurangzeb
Adding to the positive mood, the IMF staff-level deal under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) paved the way for the release of the next loan tranche. The lender projected Pakistan’s GDP growth at 3.6% and inflation at 6% for FY26. Falling bond yields, improved credit ratings, and limited alternative investment options further encouraged inflows into the stock market.
Meanwhile, Pakistan signed a RMB 5 billion memorandum of understanding with China to help tackle the ongoing water crisis. On the fiscal front, the government raised Rs507 billion through Pakistan Investment Bonds (PIBs) and Rs776 billion via T-bills, though PIB yields rose by 13–21 basis points.
External indicators also painted a stable picture, with the State Bank of Pakistan’s (SBP) foreign exchange reserves increasing by $21 million to $14.4 billion, while the rupee appreciated marginally by 0.03%, closing at 281.1 against the US dollar.
Friday’s market had closed lower by 638.50 points, but the week still ended on a positive note, gaining 708 points, or 0.4% overall. With peace prospects improving and the IMF deal in place, analysts expect continued momentum at the Pakistan Stock Exchange, provided economic and political stability hold firm in the coming days.
