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Karachi stock exchange rebounds 9.4% after last week’s sharp slideThe benchmark KSE-100 index had declined 6% last week after tensions between India and Pakistan had escalated.By Shloka Badkar   May 12, 2025, 4:42:40 PM IST (Updated)1 Min ReadThe Karachi Stock Exchange in Pakistan halted trading for 60 minutes on Monday, May 12, after the benchmark index surged more than 9% during the session. The KSE-100 index ended the day at 117,293.27, up 9.44%.

The sharp rebound follows a 6% decline in the previous week, triggered by escalating tensions between India and Pakistan. Monday’s rally prompted a temporary halt under the exchange’s volatility control mechanisms.

Monday's move comes after India and Pakistan agreed to halt all military action from 5 PM on the evening of Saturday, May 10, and the International Monetary Fund (IMF) approved two financing decisions for the country, disbursing around $2.4 billion under its economic reform and climate resilience programmes.

The Pakistan Stock Exchange has remained volatile in the past week after India conducted Operation Sindoor, targeting terrorist camps in Pakistan.

The strike hit nine terror-linked sites — four in Pakistan and five in Pakistan-occupied Kashmir — in response to the recent terror attack in Pahalgam, Kashmir. The move marks a serious escalation in cross-border tensions.

The DGMOs of India and Pakistan are set to hold talks at 12 pm on Monday, May 12.Continue ReadingFirst Published: May 12, 2025 10:42 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsPakistan