Karachi, December 5, 2024 – The benchmark KSE-100 index of Pakistan Stocks (PSX) surged to a new record high on Thursday, surpassing the 108,000-point mark for the first time.
The index rose by 3,135 points, or 2.98%, to close at 108,239 points, up from the previous day’s close of 105,104 points. This remarkable rally was fueled by growing optimism about a potential sharp cut in the country’s policy rates.
Throughout the trading session, the KSE-100 index steadily climbed as buying activity gained momentum across various sectors. Key sectors, including oil and gas exploration companies, oil marketing companies (OMCs), refineries, power generation, fertilizer, and commercial banks, saw significant interest. Major index-heavy stocks such as MARI, NRL, HUBCO, PSO, SNGPL, NBP, MEBL, and MCB all traded in the green, contributing to the index’s record high.
Market experts believe that the current rally is largely driven by strong investor confidence, spurred by the expectation that the upcoming Monetary Policy Committee (MPC) meeting, scheduled for December 16, 2024, will result in a sharp reduction in interest rates. Local institutions have been active buyers, and the high trading volumes reflect a positive market sentiment that anticipates a supportive stance from the central bank to stimulate economic growth.
This bullish momentum in the KSE-100 index has been building over the past few days. A day earlier, the index also achieved new levels, reflecting investor enthusiasm based on the anticipation of a rate cut. Analysts suggest that the market is banking on the central bank’s decision to lower interest rates to ease borrowing costs, which could further boost investment and economic activity.
The KSE-100’s strong performance is a positive signal for the broader stock market, demonstrating resilience and investor optimism amidst expectations of a more favorable economic environment. With the potential rate cuts on the horizon, market participants are hopeful that the KSE-100 index will continue its upward trajectory in the coming weeks, driven by further institutional buying and increasing market confidence.