The Pakistan Stock Exchange (PSX) recorded a strong rebound on Monday, with the KSE-100 Index surging 2,437 points (1.49%) to close at 166,243, driven by robust buying in the banking sector and optimism following a ceasefire agreement between Pakistan and Afghanistan.
Investor sentiment had recently been dampened by border tensions and economic concerns. However, the announcement of peace talks in Doha and the State Bank of Pakistan’s report of a $110 million current account surplus for September 2025 helped reignite market confidence.
Market Performance
The rally was largely led by banking heavyweights, including Habib Bank (+4.78%), United Bank (+2.23%), and Bank of Punjab (+9.99%), which collectively added nearly 1,000 points to the index. Oil and Gas Development Company (OGDC) also contributed positively, reflecting broad-based investor participation.
“The PSX experienced a strong rebound as easing geopolitical tensions and a current account surplus bolstered investor confidence,” said analysts at KTrade Securities, noting that the KSE All-Share Index traded 1.47 billion shares during the session.
According to Arif Habib Limited (AHL), 67 stocks advanced while 33 declined, with the session marking one of the most optimistic starts to the week in recent months. Meanwhile, Attock Petroleum signed an MoU with Huawei Technologies Pakistan and AE Power to jointly develop EV charging stations, reflecting positive corporate momentum.
Outlook
Market experts expect the rally to sustain if diplomatic progress continues and economic indicators remain stable. Topline Securities added that “the ceasefire agreement and economic recovery signs are fueling renewed investor confidence, particularly in financial and energy sectors.”