Karachi, December 2, 2024 – The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged to an unprecedented high of 103,275 points on Monday, marking a significant milestone in the ongoing bull run.
The index gained 1,918 points, or 1.89%, from last Friday’s close of 101,357 points, underscoring robust investor confidence in the market.
Analysts at Topline Securities Limited highlighted that the day belonged to the bulls at KSE-100 index, driven by favorable economic indicators. A key factor behind the optimism was a notable drop in Pakistan’s Consumer Price Index (CPI), which fell to 4.9% in November, compared to 7.2% in October. This represents the lowest CPI reading in 78 months and signals easing inflationary pressures, fostering a more conducive environment for investment.
The KSE-100 Index session witnessed record-breaking participation, with traded value reaching Rs. 47 billion, the highest level since May 2017. Major contributors to the activity included leading companies such as OGDC (Rs. 3.84 billion), PPL (Rs. 1.93 billion), PSO (Rs. 1.44 billion), SEARL (Rs. 1.39 billion), and DGKC (Rs. 1.26 billion).
In terms of point-wise contributions, blue-chip stocks like ENGRO, FFC, MEBL, and FCCL led the charge, collectively adding 617 points to the index. The cement sector emerged as a standout performer, posting a 4.7% day-on-day gain. Analysts attributed this surge to expectations of higher dispatch numbers for November, supported by declining interest rates, which are beginning to stimulate the sector.
The market’s exceptional performance reflects growing investor confidence in Pakistan’s economic recovery. Declining inflation, coupled with lower interest rates, has created a favorable environment for equity investments, driving up participation and valuations across key sectors.
Looking ahead, analysts remain optimistic about sustained market momentum, citing improving economic fundamentals and continued interest in blue-chip stocks. However, they caution that long-term stability will depend on consistent policy measures to support economic growth and strengthen market confidence.
The record-breaking performance of the KSE-100 index marks a pivotal moment for the PSX, as it continues to attract significant investment and set new benchmarks for market activity.
