The Pakistan Stock Exchange (PSX) continued its upward trajectory on Thursday, with the KSE-100 index surpassing the 106,000-point milestone, gaining 1,533.30 points (1.46%) to close at 106,637.63 points. This rally is driven by positive economic data, including a drop in Pakistan’s annual inflation rate to 4.9% in November, its lowest level since 2017.
The trading volume remained strong, with over 285 million shares changing hands, valued at Rs16.21 billion. Significant market activity was seen across key sectors like banking, energy, and technology, continuing the bullish momentum from the previous day when the index rose by nearly 550 points.
Also Read: Bulls Dominate PSX as KSE-100 Index Crosses 105,000 Milestone
Anticipation of a rate cut by the State Bank of Pakistan (SBP) in its upcoming monetary policy decision on December 16 further fueled investor optimism. Expectations are high that the easing inflation will allow the SBP to lower its policy rate, which has provided a favorable environment for the market rally.
Ahsan Mehanti, Managing Director of Arif Habib Corp, noted that strong economic indicators, including a 15% year-on-year rise in petroleum sales and a 5.6% increase in cement sales, contributed to the market’s gains. He also highlighted the stabilization of the Pakistani rupee and improvements in export performance and the trade deficit as positive factors.
Top contributors to the index’s gains included companies such as Mari Petroleum, Hub Power, Airlink Communication, and Millat Tractors. However, a few banks, like Habib Bank Limited and MCB Bank, saw declines, partially offsetting the broader market’s upward movement.
JS Global analyst Mubashir Anis Naviwala pointed out that narrowing the trade deficit and expectations of a rate cut were key drivers of the market’s performance. WorldCall Telecom and Cnergyico PK were among the most actively traded stocks.
Foreign investors, however, were net sellers, offloading shares worth Rs627.6 million, according to data from the NCCPL.
