The Pakistan Stock Exchange (PSX) continued its upward trend on Thursday, extending its bullish momentum for the second consecutive session as investor confidence strengthened following the staff-level agreement between Pakistan and the International Monetary Fund (IMF) for a $1.2 billion loan package.

During intraday trading, the KSE-100 Index surged by 685.25 points, reaching 166,371.63 points, marking a 0.41 percent increase from the previous close of 165,686.38 points. The rise reflects growing optimism among investors as Pakistan moves closer to securing the next tranche of IMF funding, which is expected to bolster the country’s foreign exchange reserves and stabilize macroeconomic indicators.

Market analysts attributed the sustained rally to positive sentiment in the financial and energy sectors, as well as renewed buying interest from institutional investors. The IMF deal is widely seen as a critical step toward restoring investor trust and improving Pakistan’s economic outlook.

Trading activity also showed a significant boost. A total of 1.52 billion shares changed hands during the day, compared to 1.17 billion shares traded a day earlier. The total value of shares traded stood at Rs68.60 billion, up from Rs59.20 billion on the previous trading day, signaling strong market participation.

Out of 489 companies that traded, 249 recorded gains, 204 posted losses, while 36 remained unchanged. The market breadth remained positive overall, reflecting a sustained appetite for equities amid encouraging economic developments.

Market experts believe the ongoing bullish sentiment could continue in the coming sessions if the IMF program progresses smoothly and macroeconomic indicators—such as the rupee’s stability and inflation control—remain favorable. They also pointed out that global oil prices and regional economic trends may influence market direction in the short term.

The PSX’s consistent upward momentum suggests renewed investor confidence in Pakistan’s economy, with expectations that fiscal reforms and external financing support will further strengthen the stock market’s performance in the weeks ahead.