Karachi, December 3, 2024 – The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index reached an unprecedented milestone on Tuesday, closing at 104,559 points, driven by strong investor sentiment surrounding an anticipated rate cut by the State Bank of Pakistan (SBP). This surge represents an impressive gain of 1,284 points from the previous day’s close at 103,275 points.
Investor confidence soared following Prime Minister Shehbaz Sharif’s optimistic remarks about the SBP’s likely decision to reduce interest rates in response to a significant decline in inflation. This sentiment set the stage for a bullish rally that propelled the market to its highest level yet.
Market analysts from Topline Securities Limited described the day’s performance as a “firm takeover by the bulls,” with the KSE-100 achieving extraordinary milestones. The value of trade in the ready market climbed to a staggering Rs57 billion (approximately $203 million), the highest level recorded in 18 years. The optimism centers on the upcoming monetary policy meeting scheduled for December 16, 2024, where market participants widely anticipate a substantial reduction in policy rates.
Positive macroeconomic indicators further fueled the rally at KSE-100 index. Pakistan’s trade deficit contracted sharply in November 2024, shrinking by 19% year-on-year to $1.59 billion. The improvement, supported by rising exports and falling imports, has strengthened expectations of a robust current account surplus, reinforcing investor confidence.
The rally was powered by major contributors such as ENGRO, MARI, POL, FFC, and DAWH, collectively adding 658 points to the index. However, the upward momentum was slightly dampened by lagging stocks like HBL, SYS, MEBL, CHCC, and PPL, which collectively shaved 169 points off the index.
Trading activity was exceptionally robust, with a total volume of 1,765 million shares traded during the session. CNERGY led the volume charts, with an astounding 246 million shares exchanging hands.
The KSE-100’s record-breaking performance reflects the market’s resilience and optimism. With improving economic fundamentals and the potential for monetary easing, investors remain bullish, anticipating sustained growth in the coming weeks.