Karachi, December 16, 2024 – The Pakistan Stock Exchange (PSX) witnessed a historic surge during intraday trading on Monday, crossing the 116,000-point mark at 12:00 PM. The benchmark KSE-100 Index climbed to 116,104 points, gaining 1,802 points from Friday’s close of 114,302, fueled by anticipation of a major policy rate cut.
Buying momentum was observed in key sectors such as automobile assemblers, cement, fertilizers, oil and gas exploration companies, oil marketing companies (OMCs), and refineries. Conversely, selling pressure dominated the commercial banking and power generation sectors.
PSX Index-heavy energy sector stocks, including Mari Petroleum (MARI), Oil & Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), Sui Northern Gas Pipelines Limited (SNGPL), and Sui Southern Gas Company (SSGC) traded positively. Meanwhile, prominent banking stocks such as Habib Bank Limited (HBL), MCB Bank (MCB), Meezan Bank (MEBL), and National Bank of Pakistan (NBP) recorded declines.
The strong buying momentum stems from PSX expectations ahead of the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) meeting, scheduled for later today. The central bank is widely expected to announce a further reduction in the policy rate, a continuation of its monetary easing that began in June 2024. The Monetary Policy Statement (MPS) will be issued later today to confirm the decision.
Key indicators have fueled investor optimism. With inflation (CPI) remaining below 5% and Treasury bill (T-bill) yields in the latest auction dropping significantly—12% for 3- and 6-month papers, reflecting declines of 100 basis points and 89 basis points, respectively—analysts predict another rate cut could be on the horizon.
Last week, the PSX demonstrated exceptional performance, continuing its record-breaking trend. The KSE-100 Index surged by an impressive 5,247.85 points on a week-on-week basis, closing at its highest-ever level of 114,301.80 points. This rally was driven by robust local investor interest and strong institutional support.
Today’s intraday surge reflects mounting investor confidence, as market participants eagerly await the central bank’s decision, which could further cement the PSX’s position as one of the best-performing markets in the region.