The Pakistan Stock Exchange (PSX) continued its bullish trajectory on Wednesday, with the KSE-100 index reaching an all-time high. During intraday trading, the index surged by 735.32 points, peaking at 105,294.39 points from the previous close of 104,559.07 points. This rally was largely driven by rising investor optimism, particularly expectations that the State Bank of Pakistan (SBP) will reduce the policy rate due to easing inflationary pressures.
The momentum had already been building on Tuesday when the stock market hit a fresh peak, with traded value reaching Rs57 billion, the highest in 18 years. Investors’ confidence has been boosted by a combination of falling inflation and positive economic indicators, such as a decreasing trade deficit and growing exports. Key stocks driving the activity included Cynergyico PK, WorldCall Telecom, and Hascol Petroleum.
Also Read: PSX Sees Rapid Gains Post IMF Deal
Ahsan Mehanti of Arif Habib Corp highlighted that across-the-board trading was fueled by expectations of a major policy rate cut and other favorable data, including a 7.4% drop in the trade deficit and steady growth in exports. As a result, the KSE-100 index gained 1,284.13 points to close at 104,559.07, with major contributors being Engro Corporation, Mari Petroleum, Pakistan Oilfields, and Fauji Fertilizer.
Topline Securities attributed the rally to robust investor confidence, citing expectations of a big rate cut in the upcoming monetary policy meeting. Additionally, a 19% year-on-year contraction in the trade deficit for November, along with rising exports and a decline in imports, further fueled optimism, pointing toward a strong current account surplus. Engro Corporation, Mari Petroleum, and Pakistan Oilfields were among the biggest contributors to the rally, while Habib Bank, Systems Limited, and Meezan Bank were notable drags.
