Karachi, December 11, 2024 – The Pakistan Stock Exchange (PSX) witnessed a strong rebound on Wednesday, with the benchmark KSE-100 index rallying to a fresh record high of 110,810 points, regaining momentum after a day of profit-taking. The index surged by 1,914 points, or 1.76%, driven by robust buying across key sectors.
The market opened on a positive note, maintaining an upward trajectory throughout the session. The KSE-100 Index reached an intra-day high of 111,012 points before settling just below that at the close. The rally was fueled by optimistic sentiment stemming from improved economic indicators and a favorable policy outlook.
Key sectors, including automobile assemblers, cement, commercial banks, fertilizers, oil and gas exploration, refineries, and power generation, saw broad-based buying interest. Heavyweights such as HUBCO, NRL, PSO, SSGC, SHELL, ENGRO, NBP, MEBL, HBL, and UBL traded firmly in the green, bolstering the index’s upward momentum.
KSE-100 index Investors were encouraged by a drop in inflation to 4.9% in November, its lowest level in years, which has heightened expectations of an interest rate cut in the upcoming Monetary Policy Committee (MPC) meeting. A reduction in policy rates could further stimulate economic activity and enhance corporate profitability, adding to the bullish sentiment at the PSX.
Additionally, a high-level meeting held on Tuesday to address the Advance-to-Deposit Ratio (ADR) policy in the banking sector added to market optimism. Discussions focused on enhancing lending to productive sectors while evaluating its impact on tax revenues and the banking sector’s overall environment. The government’s push to promote commercial lending through higher tax rates on investment income for banks with ADRs below 50% is expected to encourage greater economic activity.
The rebound at KSE-100 index followed a volatile session on Tuesday when the KSE-100 index closed 1,073.74 points lower at 108,896.65 due to profit-taking. However, Wednesday’s rally highlighted the market’s resilience, driven by strong fundamentals and investor confidence in the economy’s improving trajectory.
The record-breaking performance underscores growing optimism in Pakistan’s capital markets, with analysts predicting continued upward momentum in the near term, supported by favorable macroeconomic trends and policy initiatives.