The Pakistan Stock Exchange (PSX) witnessed a remarkable surge on Wednesday, reaching a new record high by crossing the 67,700-point mark, propelled by investor optimism regarding a potential policy rate cut and robust cement sales.
The market embarked on an upward trajectory right from the beginning of trading, driven by expectations of monetary policy easing by the State Bank of Pakistan (SBP) following a decline in inflation to 20.68% for March 2024. Selective buying, particularly in the cement sector, contributed to the bullish momentum, enabling the KSE-100 index to climb nearly 870 points. Throughout the trading session, the market remained in positive territory, reaching an intra-day high of 67,873.21.
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The upbeat sentiment was fueled by various factors, including positive data on cement sales, an increase in oil sales, growth in textile exports, and a surge in global crude oil prices. At the close, the benchmark KSE-100 index registered a substantial increase of 869.77 points, settling at 67,756.04. Cement stocks, in particular, attracted significant attention amid expectations of a rate cut in the near future.
Cement sector giants such as Maple Leaf Cement, Fauji Cement, and DG Khan Cement closed at their respective upper limits, driving the sector’s positive performance. Additionally, the steel sector also witnessed gains, with companies like International Steels, Mughal Iron and Steel Industries, and Amreli Steels recording notable increases. Key positive contributors to the market included Engro Corporation, Engro Fertilisers, Lucky Cement, Pakistan Petroleum, Oil and Gas Development Company, and Dawood Hercules. On the other hand, Meezan Bank, MCB Bank, and Hub Power were among the negative contributors.
Overall trading volumes saw a significant uptick, reaching 361.8 million shares, while the value of shares traded amounted to Rs11.9 billion. Foreign investors remained net buyers of shares worth Rs644.6 million. Analysts anticipate the positive momentum in the market to persist, with intermittent profit-booking intervals. The emergence of the cement sector as a key driver of the rally underscores its potential to contribute further to the market’s upward trajectory in the coming quarters.
