Pakistan Stock Market Today: After $1.3 Trillion Wipeout, Karachi 100 Index Jumps 9%

 The Pakistan stock market today staged a dramatic recovery, with the Karachi Stock Exchange 100 Index (KSE-100) jumping nearly 9%.

At the moment of writing this story, the stock is up by  8.84% or 9,475.49 points to 116,650.12 as of 11:08 AM on Monday, May 12. The surge follows a weekend ceasefire agreement between India and Pakistan, bringing much-needed relief to markets reeling from geopolitical instability and financial stress.

India-Pakistan Tensions De-Escalate 
After days of military escalation involving missile and drone attacks on each other’s installations, India and Pakistan announced a mutual ceasefire over the weekend. The development has significantly calmed tensions, resulting in a positive reaction across financial markets.

IMF Bailout Offers Financial Cushion
Adding to the optimism was the announcement of a $2.3 billion bailout package by the International Monetary Fund (IMF), confirmed on May 9 in Washington. While India abstained from voting, the IMF approval has injected much-needed confidence into Pakistan’s struggling economy. 

Read More 
Bulls Charge At Opening Bell After India-Pakistan De-escalation; NSE Nifty50, BSE Sensex Up 2.3%

Last Week’s Carnage Still Fresh
Despite today’s rally, the market is still recovering from one of its sharpest declines in recent history. Between May 7 and May 9, the KSE-100 index plunged over 10%, including a 6,400-point fall in a single day, wiping out $1.3 trillion in market value, as per open sources. The panic sell-off was triggered by escalating border tensions and uncertainty around IMF negotiations.
 

Indian Markets Rally Too
The positive geopolitical turn also buoyed Indian equities. On monday, at the opening bell, the Sensex surged 1,787.69 points (2.25%) to 81,242.16, while the Nifty climbed 547.45 points (2.28%) to 24,555.45. Market breadth remained strong, with over 2,300 stocks advancing. Jio Financial, Shriram Finance, Trent, Bajaj Finserv, and L&T led the rally, while Cipla was the sole Nifty stock in the red.