Karachi, January 20, 2025 – The Pakistan Stock Exchange (PSX) witnessed a strong rally on Monday, with the benchmark KSE-100 index surging by 573 points. The index closed at 115,845 points, up from Friday’s closing of 115,272, driven by political stability and expectations of an interest rate cut.
Analysts at Topline Securities Limited highlighted that the bulls firmly controlled the PSX, propelling the KSE-100 index to an intraday high of 1,004 points before settling with a gain of 573 points, equivalent to a 0.50% increase. This robust performance was underpinned by improved investor confidence as political uncertainties eased, coupled with optimism surrounding a potential interest rate cut in the upcoming monetary policy meeting, scheduled for January 27, 2025.
The positive sentiment permeated across the PSX, as investors rallied around key sectors. Major contributors to the day’s gains included ENGROH, FFC, MEBL, SEARL, and MLCF, collectively adding 449 points to the index. However, some stocks, including MARI, PPL, SYS, PSO, and BAFL, registered losses, trimming 182 points from the overall gains.
The trading session at PSX was marked by high activity, with 674 million shares changing hands and a total turnover of Rs 37.5 billion. WorldCall Telecom Limited (WTL) topped the volume charts, trading 59 million shares, demonstrating heightened investor interest in the company.
Market experts believe that the anticipation of monetary easing has created a favorable outlook for equities on the PSX, particularly in sectors such as banking, cement, and fertilizers. The rate cut, if implemented, is expected to reduce borrowing costs, improve corporate earnings, and further stimulate trading activity in the PSX.
Furthermore, the political stability that emerged over the weekend has alleviated investor concerns, providing a boost to the PSX. This renewed confidence in the market is evident from the broad-based buying across sectors, signaling strong investor sentiment.
As the PSX gears up for the monetary policy announcement later this month, analysts anticipate continued momentum, provided that macroeconomic indicators and political conditions remain supportive.