Investor enthusiasm surged at the Pakistan Stock Exchange (PSX) on Thursday as the market reacted positively to the announcement of a newly finalized trade agreement between Pakistan and the United States.

The KSE-100 index jumped by 1,345.59 points, marking a 0.97% rise and closing at 139,757.84 points. The strong performance reflects growing market confidence in the country’s economic outlook, driven by expectations of increased foreign investment and deeper economic cooperation with the U.S.

The upward momentum follows Wednesday’s modest gains, when the index climbed by 447.43 points to close at 138,412.25. Market activity also remained robust, with over 425 million shares traded, amounting to nearly Rs 25 billion in transaction value.

Out of 476 companies that traded during the session, 152 saw their share prices rise, while 290 recorded declines. The remaining 34 companies saw no change.

Analysts attributed the bullish trend to optimism sparked by the trade deal, which is seen as a catalyst for future collaboration in sectors such as energy, infrastructure, and technology. The deal is also expected to ease market access and potentially attract large-scale U.S. investments into Pakistan’s economy.

Adding to the market’s buoyancy, former U.S. President Donald Trump took to social media to confirm the deal’s completion. In a post on X (formerly Twitter), he revealed that the agreement includes plans for joint exploration of oil reserves in Pakistan, with a U.S.-Pakistan partnership selecting the company to lead the venture.

“We’ve just finalized a deal with Pakistan to explore their substantial oil reserves together,” Trump stated. “There’s a real possibility Pakistan could one day be selling oil to India.”

The landmark agreement and the promise of collaborative energy projects have injected fresh optimism into Pakistan’s economic narrative, positioning the country as a potential hub for regional energy and trade initiatives.