Trading Halted At Pak’s Karachi Stock Exchange After Index Soars 9 Per Cent

<p>Trading activity at the Karachi Stock Exchange was temporarily suspended for 60 minutes on Monday, May 12, after the benchmark KSE 30 index surged by 9 per cent. The trading halt was triggered when the index reached 116,650 points, reflecting strong investor sentiment following a weekend of significant geopolitical and economic developments.</p>
<p>The sharp uptick came after a turbulent week for Pakistan&rsquo;s equity markets, during which the KSE index &nbsp;dropped 6 per cent. That decline followed heightened tensions between India and Pakistan, including military operations and cross-border strikes that rattled investor confidence.</p>
<h3>Ceasefire and IMF Support Lift Market Sentiment</h3>
<p>The market rebound was spurred by two key developments. First, both India and Pakistan agreed to cease all military operations starting 5 PM on Saturday, May 10. This truce came after a series of escalations, including India&rsquo;s <a title=”Operation Sindoor” href=”https://news.abplive.com/topic/operation-sindoor” data-type=”interlinkingkeywords”>Operation Sindoor</a> on May 9. The operation targeted nine terror-linked sites &nbsp;in Pakistan and &nbsp; Pakistan-occupied Kashmir, in retaliation for a recent terror attack in Pahalgam, Kashmir.</p>
<p>Second, the International Monetary Fund (IMF) approved two financing packages for Pakistan, releasing approximately $2.4 billion to support the country’s economic reform and climate resilience initiatives. The IMF’s decision, made in Washington on May 9, came at a critical time as the country seeks to stabilise its economy amid geopolitical turbulence. Notably, India abstained from the vote.</p>
<p>These developments led to a spike in investor optimism. In early trade on May 12, the broader KSE-100 index saw a massive 9,928-point intra-day rally, peaking at 117,104.11, reported Moneycontrol.</p>
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<h3>Regional Markets React&nbsp;</h3>
<p>The positive momentum wasn’t limited to Pakistan. In India, the Nifty 50 and BSE Sensex each climbed over 3 per cent on Monday, rallying nearly 2,500 points and 786 points respectively by 12:37 PM.&nbsp;</p>
<p>Volatility also showed signs of easing. The ‘fear gauge’&mdash;a key index that measures market uncertainty&mdash;is expected to break its eight-day rising streak, providing some breathing space for investors as the ceasefire appeared to hold despite an early violation by Pakistan.</p>