The bulls staged a strong comeback at the Pakistan Stock Exchange (PSX) on Monday, with the benchmark KSE-100 Index soaring 1,904 points intraday before closing at an all-time high of 148,196 — up 1,704 points, or 1.16 per cent.

According to Topline Securities, investor sentiment was buoyed by reports of the government’s circular debt reform drive.

The plan includes reducing LNG cargoes, revising RLNG pricing, and mobilising funds through LNG diversion savings, state-owned enterprise dividends, and power sector receivables.

Detailed proposals are expected next week, sustaining market optimism.

Index heavyweights Lucky Cement (LUCK), Meezan Bank (MEBL), Bank AL Habib (BAHL), and Pakistan Petroleum Limited (PPL) collectively added 756 points to the day’s rally.

Investor participation also remained strong, with trading volume climbing to 602 million shares, generating a turnover of Rs38.9 billion. WorldCall Telecom (WTL) topped the volumes chart with 39.3 million shares traded. Ahsan Mehanti of Arif Habib Corp said investors also factored in Fitch Ratings’ brighter outlook on Pakistan’s banks and Moody’s upgrade of the country’s currency ratings to Caa1.

“Strong earnings outlook, rupee stability, and speculation over Pakistan-US trade and investment deals — including potential export tariff incentives — acted as catalysts for the record close at the PSX,” Mehanti added.