The Pakistan Stock Exchange (PSX) achieved a major milestone on Monday as the KSE-100 index crossed the 111,00 points for the first time in history. Investors celebrated the record-breaking rally, which reflected growing confidence in Pakistan’s financial markets.
Opening Rally Boosts Market
The market began the day with a strong rally. The KSE-100 index surged by 1,284 points during intra-day trading, reaching an all-time high of 111,254 points. This marks a continuation of a weeks-long bullish trend fueled by positive economic developments.
Economic Indicators Drive Momentum
Analysts credit the historic surge to a combination of factors. These include reduced interest rates, strong foreign inflows, and ongoing economic reforms. A stabilizing rupee and declining government bond yields further boosted investor confidence.
On Friday, the index closed at a record high of 109,970.38 points, gaining 916.44 points. Monday’s rally added to this momentum, solidifying the market’s upward trajectory.
Institutional Buying Supports Market
Institutional investors played a key role in Monday’s performance. Initially, the market faced pressure, dropping 1,424 points due to concerns over the advance-to-deposit ratio (ADR) for banks. However, institutional buying turned the market positive, pushing the index to an intra-day high of 110,359 points before closing.
Key Contributors to the Rally
The rally was fueled by major stocks. Mari Petroleum, Lucky Cement, Systems Limited, Engro Corporation, and The Searle Company collectively contributed 910 points to the index. Heavy trading volumes were observed in stocks such as K-Electric, WorldCall Telecom, and Cnergyico PK.
Policy Rate Cut Expectations Fuel Optimism
Speculation about a larger policy rate cut by the State Bank of Pakistan (SBP) further encouraged investors. The anticipation of a reduced policy rate, coupled with improved economic stability, created a favorable environment for trading.
‘Moana 2’ Sails to Top of Box Office for Second Week
Oil Prices Add to Investor Confidence
Rising global crude oil prices also played a role in driving optimism. Higher oil prices are seen as beneficial for the energy and petroleum sectors, which in turn boosted market sentiment.
Market Outlook Remains Positive
The PSX’s historic rally underscores growing investor confidence in Pakistan’s economy. Analysts expect the bullish trend to continue, especially if the SBP delivers a substantial rate cut in its upcoming monetary policy announcement.
Investors are optimistic that the financial market will sustain this growth, offering new opportunities in the weeks ahead.
Follow Day News on Google News, Instagram, YouTube, Facebook, Whats App, and TikTok for latest updates
