The Pakistan Stock Exchange (PSX) continued its upward trajectory on Friday, with the KSE-100 index hitting a historic high of 109,000 points during intra-day trading.
The market saw a significant boost, starting with an increase of 1,035 points, pushing the KSE-100 index beyond the 109,000-point mark. By the close of trading, the index had gained 814.9 points, or 0.75%, reaching a record high of 109,478.08 points.
This surge in the market reflected strong investor optimism and positive trading sentiment. Experts predict that the State Bank of Pakistan (SBP) will likely reduce its key interest rate further during the upcoming policy meeting, scheduled for December 16, as inflation continues to decline.
Most analysts anticipate the SBP’s Monetary Policy Committee (MPC) will lower the policy rate by 200 basis points (bps). Earlier in November, the SBP had already slashed the key interest rate by 250bps to 15%, marking the fourth rate cut since June, totaling a 700bps reduction.
On Thursday, the PSX set another record, with the KSE-100 index surging by 3,134 points, surpassing the 108,000 mark. This rally was fueled by positive economic indicators, including a drop in the annual inflation rate to 4.9% in November, its lowest level in six years, and a 19% year-on-year reduction in the trade deficit to $1.59 billion. These developments sparked hopes of a current account surplus and boosted market confidence.
The broad-based rally saw strong gains across key sectors such as energy, fertiliser, and commercial banks, with major companies in these sectors driving the market forward.
Analysts noted that the PSX reached a 19-year high in market activity, with Rs63 billion ($227 million) traded—the highest since April 17, 2006. Ahsan Mehanti, MD of Arif Habib Corp, attributed the record close to rupee stability, falling lending rates, and decreasing government debt stock.
Topline Securities highlighted that the day’s trading was dominated by local mutual funds, which were a key driver behind the bullish momentum. Blue-chip stocks in high-capitalisation sectors, including Mari Petroleum, Fauji Fertiliser, Hub Power, United Bank, Pakistan Petroleum, and Lucky Cement, contributed 1,303 points to the index’s rise.
Arif Habib Limited (AHL) reported a 3% gain for the day, with the index up 8% since surpassing the 100,000 mark. Leading contributors to the index’s rise were Mari Petroleum (+9.86%), Fauji Fertiliser (+3.73%), and Hub Power (+6.43%), while Engro Corporation (-1.19%), TRG Pakistan (-3.59%), and GlaxoSmithKline (-1.64%) had the largest negative impact.
In corporate news, Hub Power announced that its subsidiary had signed a deal to acquire a 50% stake in Mega Motor Company, which would also involve a supply agreement with BYD Auto Industry.
JS Global analyst Mubashir Anis Naviwala noted that the market witnessed strong buying activity, especially in the oil and gas, banking, fertiliser, and power sectors, driven by investor optimism surrounding the anticipated rate cut.
The total trading volume for the day was 1.65 billion shares, down from 1.75 billion on Wednesday. The value of shares traded was Rs63.2 billion, with 473 companies involved. Of these, 307 closed higher, 129 fell, and 37 remained unchanged.
The Bank of Punjab was the volume leader, with 163.5 million shares traded, closing at Rs10.09, followed by WorldCall Telecom with 150.5 million shares, closing at Rs1.59. Cnergyico PK traded 86.7 million shares, closing at Rs6.87.
Foreign investors sold shares worth Rs1.33 billion, according to the NCCPL.
