The Pakistan Stock Exchange (PSX) kicked off the new trading week with a remarkable rally, as the benchmark KSE-100 Index surged by 1,471 points, pushing the index to a new high of 118,788 points during intraday trading. This marks one of the strongest single-day performances in recent weeks, reflecting heightened investor confidence and favorable macroeconomic signals.
The market momentum follows Friday’s closing session, which had already indicated a bullish trend with a 414-point gain. Market participants entered the week with optimism, and Monday’s developments only strengthened the sentiment.
According to analysts, the key driver behind this surge is the government’s proactive move to tackle the persistent issue of circular debt in the energy sector. The government has finalized a plan to initiate payments on a Rs 1,275 billion low-interest loan agreement with 18 local banks starting next month. This significant step is expected to inject liquidity into the struggling energy sector and improve overall fiscal management.
The oil and gas sector led the gains, with major stocks in the energy and utilities segment showing robust upward movement throughout the session. The renewed focus on sectoral reform, especially in the power and energy sectors, is being viewed positively by both domestic and foreign investors.
Market experts believe that if the government continues implementing economic reforms and debt restructuring plans efficiently, this momentum could sustain, driving further growth in the PSX in the coming weeks.
