The bullish trend returned to the Pakistan Stock Exchange (PSX) with the KSE-100 Index gaining more than 1,500 points during trading on Wednesday.

Analysts believe that Saudi Arabia's $6 billion bailout package for the country is the main reason behind restoration of investors' confidence.

The market opened on a positive note and climbed more than 1,000 points within the first 10 minutes of trading. The benchmark moved up 1,556 points to reach 39,271 points at the close. Trade volume and value also increased significantly.

Trading activity was led by power generation and distribution sector. The chemical and banking sectors followed respectively.

Senior analyst Ahsan Mehnati said that the Saudi package worth $6 billion triggered the bullish trend. He said that till yesterday, the market was being driven by negative sentiments based on the concerns regarding the imbalance of external payments.

The latest development has removed the concern, he said, with the investors rushing to the market. The value of rupee has also strengthened overnight, he said while talking about the positive impacts of Saudi Arabia's pledge.

Nabeel Khursheed, another analyst currently associated with Topline Securities, also agreed that the Saudi package has changed the situation at the bourse.

"Balance of payments was the major concern of investors and the government was looking towards the International Monetary Fund (IMF) for a $12 billion bailout package. The investors had reservations over the expected austerity measures associated with the IMF programme. Such mandatory measures imposed by the IMF increase the cost of doing business among other issues," he said, adding that with the $6bn in hand, the government is in a better position to negotiate with the monetary body.

Also, the sentiments at the bourse are really high as the investors are expecting more positive news during Prime Minister Imran Khan's visits to China and Malaysia.

He expressed hope that the trend at the PSX will remain positive for the next few days.