KARACHI/ISLAMABAD – October 21, 2025:

The Pakistan Stock Exchange (PSX) opened the week on a high note, soaring by 2,436.69 points on Monday as investor confidence surged following a ceasefire deal with Afghanistan and a staff-level agreement with the International Monetary Fund (IMF).

According to PSX data, the benchmark KSE-100 Index jumped by 1.49%, closing at 166,242.90 points, compared to 163,806.2 at Friday’s close.

Market experts linked the strong performance to a wave of optimism over improved regional stability and economic support from the IMF.

> “Bullish activity was driven by the ceasefire between Pakistan and Afghanistan and the IMF’s staff-level deal for the release of the next tranche,” said Ahsan Mehanti, CEO of Arif Habib Commodities, while speaking to Arab News.

Peace and Policy Boost Investor Confidence

The positive momentum followed Sunday’s ceasefire agreement signed in Doha between Islamabad and Kabul, which ended weeks of deadly border clashes that had disrupted trade and inflamed tensions.

The truce was seen by investors as a sign of easing geopolitical risks and the possibility of restoring trade routes that are vital for Pakistan’s exports to Central Asia.

> “The accord, focusing on mutual respect for sovereignty and territorial integrity, sent a clear message of stability,” explained Maaz Mulla, Vice President of Equity Sales at Topline Securities Limited. “It was perceived as a major diplomatic breakthrough with strong economic implications.”

Banking Sector Leads the Rally

Heavyweights in the banking sector were the primary drivers of Monday’s rally.Stocks of Habib Bank Limited (HBL), United Bank Limited (UBL), Bank of Punjab (BOP), National Bank of Pakistan (NBP), and Askari Bank Limited (AKBL) together added 989 points to the benchmark index.

Meanwhile, K-Electric (KEL) remained the volume leader, with 229 million shares traded.Total market volumes surged to 1.47 billion shares, while the turnover climbed to Rs51.8 billion (approximately $184 million) — a clear indication of strong investor participation.

Global and Domestic Catalysts Align

Analysts said the rally was further supported by strength in global equities and upbeat corporate earnings expectations ahead of the results season.

Pakistan’s new IMF staff-level deal — covering both the second review of its 37-month Extended Fund Facility and the first review of its 28-month Resilience and Sustainability Facility — has bolstered investor hopes for financial stability and continued reform momentum.

> “Ceasefire-driven optimism has set a positive tone for the week,” Mulla added. “It’s reinforcing market confidence in the PSX’s upward trajectory.”