Karachi, November 5, 2024 – The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged to an all-time high of 92,304 points on Tuesday, marking a significant milestone for the local stock market.
Closing 366 points higher than the previous day’s close of 91,938, the index’s performance reflects growing investor confidence driven by recent monetary policy shifts and economic optimism.
The KSE-100 index saw a peak intraday gain of 576 points before stabilizing at 92,304 points, reflecting a 0.40% increase. According to analysts at Topline Securities Limited, the market’s upward momentum was fueled by the State Bank of Pakistan’s (SBP) latest policy decision to reduce interest rates. This recent adjustment marked the fourth consecutive rate cut, with a substantial 250 basis points reduction, bringing the policy rate down to 15%. This accommodative policy move, paired with reassurances from the SBP governor about the country’s economic outlook, has significantly lifted investor sentiment.
Several leading stocks played key roles in driving the KSE-100 index upward. Major contributors included Lucky Cement (LUCK), Hub Power Company (HUBC), Oil & Gas Development Company (OGDC), Systems Limited (SYS), and Millat Tractors (MTL), which collectively added 274 points to the index. In contrast, some financial sector stocks, including United Bank Limited (UBL), Habib Bank Limited (HBL), Bank AL Habib Limited (BAHL), Cherat Cement Company Limited (CHCC), and Meezan Bank Limited (MEBL), were among the laggards, collectively pulling the index down by 143 points.
Market activity remained robust, reflecting heightened investor interest and liquidity. A total of 748 million shares were traded during the day, with a transaction value of Rs 32.7 billion. Sui Southern Gas Company (SSGC) led the trading volume, with a notable 51.9 million shares changing hands.
Financial analysts attribute the sustained rally not only to the SBP’s rate cut but also to positive economic indicators that have helped reduce uncertainties around inflation and economic growth. The current monetary policy environment is seen as favorable for businesses and investors, offering cheaper credit and encouraging corporate growth. As a result, sectors such as cement, energy, and technology have been witnessing increased buying activity.
Looking ahead, market analysts remain optimistic but cautious. “The recent gains signal a healthy market response to economic adjustments,” remarked a Topline Securities representative. “If supportive policies continue and economic indicators remain stable, the KSE-100 index could sustain its upward trajectory.”
Overall, the record-breaking performance of the KSE-100 index underscores the renewed investor confidence in Pakistan’s stock market, supported by proactive fiscal and monetary policy adjustments aimed at boosting economic resilience.
