The Pakistan Stock Exchange (PSX) witnessed a strong upward surge on Monday, gaining 978.17 points in a single trading session. This increase pushed the KSE-100 index to 139,390.42 points, showing signs of fresh confidence returning to the market. This sudden spike was mainly driven by positive news related to U.S. Pakistan trade ties and a possible energy collaboration, especially in the oil and gas sector.
U.S.–Pakistan Oil Partnership Boosts Investor Trust in Energy Stocks
One of the biggest reasons behind the sudden rise in PSX was the announcement of a potential trade and energy deal between the United States and Pakistan. U.S. President Donald Trump took to social media to share the news, stating that a “historic partnership” would be developed with Pakistan, including agreements on exploring untapped oil reserves.
This announcement came as a surprise to many and sparked renewed hopes for foreign investment in Pakistan’s energy sector. As a result, investors quickly turned to oil and gas companies, expecting them to benefit if this partnership materializes. Companies like Oil and Gas Development Company Pakistan Petroleum Limited and Mari Petroleum saw notable increases in their stock prices.
PSX Market Performance Shows Signs of Economic Recovery and Foreign Interest
The sharp rise in the stock market is also a sign of a wider recovery in Pakistan’s financial environment. Over the last few months, several economic indicators have begun showing positive signs. For instance, inflation has slowed down, the current account has posted a surplus, and foreign remittances have increased.
These improvements, combined with potential foreign collaborations like the U.S. deal, are giving investors a reason to believe that the country might finally be stepping out of its financial troubles.
Heavy Buying in Oil, Energy, and Banking Stocks Pushes Index Up
The latest rally was largely supported by heavy buying in sectors such as energy, oil exploration, and banking. Investors seem to have renewed confidence that these sectors will lead future economic growth. Stocks like OGDC, PPL, Mari Petroleum, and Bank of Punjab saw large volumes of trade.
Even foreign institutional investors were active in the session, showing that interest in Pakistani assets might be slowly returning. Banking sector stocks also surged due to hopes of better lending activity and reduced bad loans following economic reforms.
According to PSX data, the total trading volume crossed 577 million shares, and the total value of transactions increased to over Rs 36 billion, from Rs 25 billion the previous session. This surge in volume reflects growing participation from both institutional investors and small retail investors, signaling that more people are beginning to trust the stock market again.
