KSE-100 Index Hits All-Time High at 104,361.24, Adding 1,086 Points in Intraday Trading
The Pakistan Stock Exchange (PSX) continued its historic upward momentum on Tuesday, buoyed by a significant decline in inflation and growing expectations of a policy rate cut. The benchmark KSE-100 index surged by 1,086.3 points (0.48%) to reach a record high of 104,361.24 during intraday trade, reflecting strong investor optimism.
Inflation Drop Spurs Market Rally
Investors were encouraged by the Pakistan Bureau of Statistics’ report showing November’s inflation at 4.9% — the lowest in six-and-a-half years. Analysts believe this dramatic drop, coupled with a stabilizing economy, signals room for monetary easing, which could further fuel market growth.
Prime Minister Shehbaz Sharif, addressing a federal cabinet meeting, underscored the importance of this inflationary decline. He expressed optimism about a potential rate cut by the State Bank of Pakistan’s (SBP) Monetary Policy Committee, citing the drop as a “game-changer” for economic growth.
Government Commits to Economic Stability
The day’s trading began with Federal Minister for Planning Ahsan Iqbal ringing the ceremonial gong at the PSX. He highlighted the government’s focus on economic recovery, noting key achievements like attracting $25 billion in Chinese investment and tackling power shortages.
“Crossing the 100,000 mark in the KSE-100 index showcases Pakistan’s economic potential,” said Iqbal. He also credited tough decisions, such as energy price adjustments, for stabilizing the economy and fostering growth.
PSX’s Global and Regional Standing
PSX Chairperson Dr. Shamshad Akhtar lauded the exchange’s performance, noting its position among the best-performing markets in the region and globally. She emphasized the role of sound economic policies and partnerships, including collaborations with Chinese investors, in driving growth.
“The PSX has delivered a 7% return in dollar terms over the past five years,” said Dr. Akhtar, adding that crossing the 100,000-point milestone reflects Pakistan’s resilience and potential.
Key Sectors Leading the Surge
The rally was driven by robust performances in banking, technology, and oil and gas exploration sectors. Banking stocks particularly benefited from recent regulatory changes, including the removal of the Minimum Deposit Rate (MDR) requirement for corporate deposits.
Outlook: Sustained Growth Anticipated
Market analysts expect the PSX to maintain its upward trajectory, citing stabilizing external accounts, improved monetary measures, and reduced business costs. The cooling inflation and anticipated rate cuts are likely to create an even more favorable environment for investors.
The KSE-100’s record-breaking streak underscores the transformative impact of economic reforms and investor confidence in Pakistan’s growth story.