The Pakistan Stock Exchange (PSX) achieved a historic milestone on Thursday, as the KSE-100 index surged to a record close of 88,945.98, rising by 1,751.45 points or 2.01%. The index peaked at an all-time high of 89,126.15 during trading, reflecting the market’s strong performance. Investor optimism is largely driven by expectations of interest rate cuts in the upcoming monetary policy meeting on November 4.
Topline Securities analysts attributed the market rally to anticipation of significant interest rate reductions, prompting investors to shift funds from fixed-income assets to equities. A survey by AHL suggested that market participants are expecting up to a 200-basis-point cut in the key policy rate. Key contributors to the index’s rise included FFC, UBL, OGDC, EFERT, and MCB, adding a combined 935 points. UBL led the trading volume with Rs3.1 billion traded, followed by ATRL and OGDC.
Read more: PSX Reaches Record High Breaking the 85,000-Point Barrier
Cement sector stocks also gained in response to the expected policy changes, with companies such as GWLC, ACPL, PIOC, KOHC, and CHCC closing higher. Analysts highlighted that falling government security yields and positive corporate earnings reports are driving the buying spree. Samiullah Tariq of Pakistan Kuwait Investment Company and Mohammed Sohail of Topline Securities pointed to the anticipated policy rate cuts as a key factor in the market’s rally.
The PSX recorded a massive trading volume of Rs53 billion (around $190 million) on Thursday, signaling growing investor confidence. According to Arif Habib Limited, the market has gained 41.0% year-to-date in 2024, positioning it as the fourth-best performing equity market globally. Meanwhile, the Pakistani rupee saw a slight depreciation of 0.04% against the US dollar, settling at 277.84 in the inter-bank market.
