Karachi, December 9, 2024 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) surged to a new record high on Monday, closing just shy of the 110,000-point milestone. The KSE-100 index ended the session at 109,970 points, marking an impressive gain of 916 points from Friday’s closing of 109,034 points.
The trading session began with strong upward momentum as the KSE-100 index crossed the 110,000-point mark during the day. Bullish sentiment dominated the market, with investors showing confidence in key sectors, driving significant buying activity.
Major contributors to the KSE-100 index’s rally included sectors such as automobile assemblers, cement, fertilizers, oil and gas exploration companies, and oil marketing companies (OMCs). Conversely, the banking sector faced selling pressure, influenced by recent government measures aimed at addressing structural challenges.
Index-heavy stocks, including ENGRO, OGDC, MARI, PPL, PSO, SSGC, SNGP, and HUBCO, recorded notable gains, pushing the KSE-100 index higher. Analysts highlighted improved macroeconomic indicators as a key driver behind the rally. Notably, inflation fell to 4.9% in November, bolstering expectations of a further interest rate cut by the central bank, which added to investor optimism.
However, the banking sector experienced a downturn due to the government’s decision to form a high-level committee to address the Advances to Deposit Ratio (ADR) issue. Under the committee’s Terms of Reference (ToRs), it will review the existing fiscal framework regarding ADR and explore alternative fiscal measures to tax profits derived from investments in government securities.
Last week, the KSE-100 index continued its record-breaking streak, fueled by strong investor interest and robust institutional support. High trading volumes reflected market confidence, as expectations of further monetary easing complemented declining inflation trends.
As the KSE-100 index closes in on the 110,000-point milestone, market participants remain optimistic about sustained gains in the near term. Improved economic indicators, coupled with active participation across various sectors, are expected to keep the momentum alive, solidifying the index’s historic upward trajectory.