The Pakistan Stock Exchange (PSX) rallied strongly on Monday. The benchmark KSE-100 Index surged by 4,411.27 points, closing at 113,924.41. This marked a 4.03% gain and the second-largest single-day increase in points in the index’s history.
The market maintained a positive trajectory throughout the session. The KSE-100 hit an intraday high of 114,189.71 points.
Key sectors witnessed significant gains. These included automobile assemblers, cement, chemicals, commercial banks, fertilisers, oil and gas exploration, and power generation. Prominent stocks such as HUBCO, PSO, MARI, OGDC, and HBL traded in the green, contributing to the market’s rally.
Central Bank Rate Cut Sparks Optimism
The rally followed the central bank’s decision to reduce the policy rate by 200 basis points. The rate now stands at 13%, down from its peak by a cumulative 900 basis points.
Brokerage house Topline Securities noted that the market rebounded from last week’s losses. Speculation that mutual fund sell-offs had subsided also bolstered investor confidence.
The KSE-100 Index has delivered a 75% gain in 2024, including dividends. This makes equities the best-performing asset class in Pakistan this year.
Recovery Follows Last Week’s Sharp Decline
The PSX had faced severe pressure the previous week. The KSE-100 had plunged by 4,788.65 points in a single day due to year-end profit-taking and mutual fund sell-offs. Monday’s rally marked a strong recovery from those losses.
The Pakistani rupee showed slight weakness against the U.S. dollar. It depreciated by 0.05%, closing at 278.57 in the inter-bank market.
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Market activity increased significantly on Monday. A total of 857.83 million shares were traded, up from 754.92 million in the previous session. The total value of shares traded rose to Rs50.55 billion from Rs39.42 billion.
Top Volume Leaders
WorldCall Telecom led trading volumes with 71.05 million shares. Cnergyico PK followed with 66.47 million shares, and Pak Elektron recorded 38.65 million shares.
Out of 463 companies traded, 361 registered gains, 62 recorded losses, and 40 remained unchanged.
Analysts attribute the rally to improved investor sentiment. Speculation about reduced mutual fund selling and the central bank’s rate cut played key roles. The PSX’s performance reflects renewed confidence in Pakistan’s equity market.
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