The Pakistan Stock Exchange (PSX) has continued its impressive upward momentum, with the KSE-100 index reaching a record high of 109,000 points during intra-day trading, reflecting strong investor confidence and positive economic signals. On the final trading day of the week, the KSE-100 index saw a significant surge, gaining 1,035 points and reaching 109,349.62 points, continuing the previous day’s record-breaking rally when the market surged by 3,134 points, surpassing the 108,000-point mark.
This rapid growth has been driven by several factors, including the decline in inflation, which fell to 4.9% in November—the lowest in six years—and a shrinking trade deficit. These factors have increased expectations of a current account surplus, bolstering market sentiment. Additionally, analysts predict the State Bank of Pakistan (SBP) will reduce its policy interest rate by 200 basis points at the next monetary policy meeting on December 16, further fueling investor optimism.
Also Read: PSX Hits New Record High as KSE-100 Index Surges Past 106,000 Points
Key sectors, including energy, fertilizers, and commercial banks, have led the rally. Companies like Mari Petroleum, Fauji Fertilizer Company, and Hub Power played a pivotal role in driving the market’s growth. Trading volumes reached historic highs, with a traded value of Rs63 billion (approximately $227 million), marking the highest activity in nearly two decades.
Experts such as Arif Habib Corp MD Ahsan Mehanti and Topline Securities attributed the surge to rupee stability, declining lending rates, and reduced government debt stock and bond yields. Analysts expect this bullish momentum to continue, especially with the anticipated rate cut and ongoing positive economic indicators.
However, some stocks, such as Engro Corporation and TRG Pakistan, faced declines, reflecting a mixed performance across the broader market. Despite this, the general outlook remains positive, with the KSE-100 index now up 8% since crossing the 100,000-point milestone.
