Karachi, September 12, 2024 – The Pakistan Stocks closed on a positive note Thursday, with the benchmark KSE-100 index rising by 366 points, primarily driven by heavy buying in blue-chip stocks.
The index closed at 79,018 points, up from the previous day’s closing of 78,652 points, marking a 0.47% gain.
Analysts at Topline Securities attributed the bullish trend at the Pakistan stocks to growing optimism ahead of the key Monetary Policy Meeting, where the State Bank of Pakistan (SBP) was widely expected to announce a cut in interest rates. Market participants anticipated a reduction of 100-150 basis points, backed by declining inflation and improved macroeconomic conditions, which fueled broad-based buying throughout the trading session.
“The Pakistan stocks opened on a strong note and maintained its positive momentum, with investors showing confidence in blue-chip stocks, particularly ahead of the monetary policy decision,” noted analysts at Topline Securities.
Blue-Chip Stocks Lead the Rally
Key heavyweights, including United Bank Limited (UBL), Fauji Fertilizer Company Limited (FFC), Fauji Cement Company Limited (FCCL), Oil & Gas Development Company (OGDC), and Hub Power Company (HUBC), posted strong gains. These blue-chip stocks collectively contributed 236 points to the overall rise in the KSE-100 index, demonstrating strong investor confidence in market leaders.
The cement sector, in particular, saw heightened buying interest, as investors speculated on the expected interest rate cut. Stocks like Fauji Cement (FCCL) surged by 4.77%, Maple Leaf Cement (MLCF) by 4.45%, D.G. Khan Cement (DGKC) by 2.20%, and Cherat Cement (CHCC) by 2.14%, outperforming the broader market.
Trading Volume and Market Sentiment
Investor sentiment was buoyant, with trading volumes reaching over 583 million shares, representing a total turnover of Rs16.3 billion. Kohinoor Spinning Mills (KOSM) led the volume chart, with more than 60.7 million shares traded during the session.
“Strong buying activity across key sectors, especially in cement and banking, suggests that investors are positioning themselves ahead of a rate cut, which would reduce borrowing costs and boost profitability for many companies,” said one market observer.
Outlook
The positive sentiment in the market is expected to persist, especially if the SBP delivers on the widely anticipated interest rate cut later in the day. Analysts believe that lower interest rates, combined with improving macroeconomic indicators, will continue to support stock prices in the near term, particularly for blue-chip and interest-rate-sensitive sectors such as banking, cement, and energy.
For now, Pakistan’s stock market appears well-positioned to build on today’s gains, with blue-chip stocks leading the way amid strong investor optimism.
