Karachi, December 16, 2024 – The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) surged to an all-time high of 116,169 points on Monday, setting a new record. This marks a substantial gain of 1,868 points from the previous closing level of 114,301 points last Friday.
Market analysts attributed the rise in the KSE-100 Index to strong buying momentum in key sectors, including automobile assemblers, cement, fertilizers, oil and gas exploration companies, oil marketing companies (OMCs), and refineries. However, selling pressure was observed in the commercial banking and power generation sectors.
Among the KSE-100 Index-heavy energy sector stocks, companies such as Mari Petroleum (MARI), Oil & Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), Sui Northern Gas Pipelines Limited (SNGPL), and Sui Southern Gas Company (SSGC) traded positively. Conversely, prominent banking stocks, including Habib Bank Limited (HBL), MCB Bank (MCB), Meezan Bank (MEBL), and National Bank of Pakistan (NBP), recorded declines.
The ongoing rally in the KSE-100 Index is driven by anticipation surrounding the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) meeting, scheduled for later today. Investors are optimistic about a potential policy rate cut, which would continue the monetary easing cycle initiated in June 2024. The Monetary Policy Statement (MPS), expected later today, will confirm the decision.
Investor sentiment has been bolstered by key economic indicators. Inflation, as measured by the Consumer Price Index (CPI), has remained below 5%, while Treasury bill (T-bill) yields in the latest auction showed significant declines—12% for both 3- and 6-month papers, reflecting reductions of 100 basis points and 89 basis points, respectively. These developments suggest the likelihood of further rate cuts, enhancing investor confidence in the KSE-100 Index.
Last week, the KSE-100 Index demonstrated exceptional performance, adding 5,247.85 points on a week-on-week basis to close at 114,301.80 points, a then-record high. The rally was fueled by strong local investor interest and robust institutional support, further solidifying the index’s upward trajectory. As of today, the KSE-100 Index has continued to break records, reflecting positive market sentiment and growing economic stability.