Islamabad, May 12 (IANS) Pakistan’s Stock Exchange (PSX) responded positively to the recent ceasefire understanding and de-escalation in tensions between India and Pakistan as PSX 100-Index rallied and soared close to 10,000 points during the intra-day trading, making the largest single-day increase in index points on record.
The Karachi Stock Exchange KSE-100 index surged by at least 9,928 points during the intra-day trading, reaching 117,104.11 points, a nine per cent increase, marking improved investor sentiment which has been pushed by the announcement of a ceasefire between India and Pakistan and negated possibilities of future escalation.
The PSX had witnessed a tempestuous week with the KSE-100 index shredding at least 6,939 points amid intensifying tensions between India and Pakistan and rising geopolitical tensions.
However, with de-escalation in tension, the PSX has recovered with a record start to the week.
Pakistan and India decided to agree to a ceasefire understanding bringing a halt to the military escalation and fears of a full-scale war. Both sides claimed success over their military strikes in each other’s territories with airstrikes and use of heavy military artillery.
Pakistan’s DGISPR on Monday said that the option of war between two nuclear-armed nations like India and Pakistan, should never happen.
“If anyone is trying to carve out space for war between the two nuclear-armed nations like India and Pakistan, the very idea is absurd,” said Lieutenant General Ahmed Sharif Chaudhry, the Director General of Inter-Services Public Relations (ISPR).
The ceasefire has also been welcomed by the locals as rallies and celebrations were witnessed across Pakistan on Sunday, with citizens carrying banners in support of peace.
Analysts reckon that aggressive posturing from both sides along the Line of Control (LoC) holds the key for the sustainability of the ceasefire, adding that “any violation by either party can trigger a much more hostile aggression from both sides, which will definitely be counter-productive and inject fear and uncertainty among the investors”.
–IANS
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