ISLAMABAD: The Pakistan Stock Exchange (PSX) gained more than 4,500 points on Friday, with analysts attributing the jump to an extended ceasefire between Pakistan and Afghanistan.
The rally reflected renewed investor confidence after weeks of uncertainty over cross-border tensions, which had weighed on investor sentiment and triggered a market downturn of over 5,000 points earlier this month.
The benchmark KSE-100 index gained 4,898.86 points, or 3.13 percent to close at 161,631.73 points, compared to the previous close of 156,732.87.
The development came a day after Pakistan and Afghanistan agreed in Istanbul to extend a ceasefire, following the worst border clashes between the two countries in years that killed dozens. Islamabad says Kabul shelters anti-Pakistan militants, an allegation the Afghan authorities deny.
Topline Securities, a Karachi-based market research firm, said the trading value and volume for the day stood at 941 million shares and Rs41.84 billion ($148.85 million).
“This positivity in market was on account of news that Pakistan and the Afghan Taliban regime have agreed to maintain ceasefire following a fresh round of talks in Istanbul which was confirmed by Turkiye’s foreign ministry,” it said in its daily market review.
Topline added that United Bank Limited (UBL), Meezan Bank Limited (MEBL), Fauji Fertilizer Company Limited (FFC), Habib Bank Limited (HBL), Bank Al Habib Limited (BAHL), Systems Limited (SYS), Lucky Cement Limited (LUCK) and Bank Alfalah Limited (BAFL), contributed over 2,390 points to the index collectively.
Pakistan and Afghanistan have agreed to extend the ceasefire reached in Doha on Oct. 19 until the next round of talks, scheduled for Nov. 6 in Istanbul.
They also decided to establish a monitoring and verification mechanism to maintain peace and hold either side accountable for any violations. The negotiations are being mediated by Türkiye and Qatar.
Ahsan Mehanti, chief executive officer at Arif Habib Commodities, earlier said speculation in the earnings seasons acted as a catalyst in the bullish sentiment after the ceasefire.
“Bullish activity witnessed after reports of Pakistan, Afghanistan agreeing to maintain ceasefire in the cross-border conflict,” he told Arab News.
Pakistan has warned that the ceasefire is conditional, saying it will treat Afghanistan’s failure to act against militant hideouts as a breach of the extended truce.
