Karachi Stock Exchange KSE 100 Up 13% In 2 Sessions, Halts Trading For 60 Minutes On May 12 - What To Expect?

Karachi Stock Exchange: This KSE 100 index extended its winning streak for the second consecutive day on Monday after Pakistan and India reached a ceasefire agreement. On Monday alone, the KSE index jumped by nearly 9% before trading was halted for at least an hour. In two trading sessions in a row, the KSE index skyrocketed by over 13%.

The index is now above its 30-Day, 50-Day, and 200-Day DMAs. Experts are predicting consolation.

Karachi Stock Exchange:

The mainboard Karachi 100 (KSE) zoomed by 9,524.65 points or 8.9% to 116,687.06, at the time of writing. The index's intraday high is at 117,074.63. Following the performance, the exchange closed trading for at least 60 minutes for investors on Monday.

Last week, on May 9th, the exchange advanced by 3.5%.

Taking into consideration the May 11th intraday high to May 9th performance, the KSE 100 index climbed by a little over 13%. Due to geopolitical tensions, from May 5th to May 8th, the KSE exchange lost about 11% valuation. From its April peak of 120,796.67, the exchange dropped by nearly 16%.

From current performance, the KSE is now down by 3% from its peak.

Why KSE Index is rising?

The latest moves come after India agreed to a ceasefire with Pakistan, which resulted in the stoppage of all military actions with effect from May 10, at around 5:00 PM. Another positive factor for investors was the approval of two loans of up to $2.4 billion by the International Monetary Fund (IMF).

The volatility is expected to continue after Operation Sindoor. DGMOs of both countries are expected to meet on May 12.

Consolidation Predicted:

The KSE-100 Index, after hitting a low of 102,421, recovered to close at 107,175, gaining 3,648 points DoD. Volumes stood at 516mn shares compared to 654mn shares traded previously. The index is expected to retest Friday's high of 107,541. A breakout above this level could target 108,329, followed by 110,408. However, any downside may find support between 103,880 and 105,720, with a drop below this range will target the recent low of 101,599, as per Pakistan-based broker JS Global.

Analysts note here, "We recommend investors to 'Buy' for trading gains, with risk managed below the 102,421 mark. The immediate support and resistance levels are observed at 103,883 and 109,003, respectively."

Following the Pahalgam terrorist attack on April 22 which resulted in the deaths of 26 civilians, including 25 Indian tourists and one Nepali national, India-Pakistan relations have reached a critical low point. The attack, attributed by India to the Islamic Resistance Front, an offshoot of the Pakistan-based Lashkar-e-Taiba, has triggered a series of retaliatory measures from both nations, escalating tensions to levels not seen in years. Later, it was discovered that Hashim Musa, a former para commando in the Pakistan Army's elite Special Service Group (SSG), was involved in the attack, as per Wikipedia.

India's response to the Pahalgam attack, led to the suspension of the Indus Waters Treaty of 1960, due to Pakistan's ongoing support for cross-border terrorism. Additionally, India imposed visa and diplomatic restrictions, banned visa services for Pakistani nationals and even expelled several Pakistani diplomats. Additionally, the country closed the Attari-Wagah border, halting trade and further straining bilateral ties.

Disclaimer

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