In a historic achievement, the Pakistan Stock Exchange (PSX) witnessed significant buying momentum on Tuesday, propelling the benchmark KSE-100 Index to close above the 92,000 mark for the first time. The index gained 366 points, ending the day at 92,304.32, marking a 0.40% increase.
The trading session began on a positive note, with the KSE-100 reaching an unprecedented intra-day high of 92,514.30. Despite a brief period of selling that pushed the index to an intra-day low of 91,536.09, a strong buying spree in the latter hours ensured a record-breaking close.
This upward trend is largely attributed to the State Bank of Pakistan’s recent decision by the Monetary Policy Committee (MPC) to implement a fourth consecutive rate cut. The policy rate was reduced by 250 basis points, bringing it down to 15%. This move, along with assurances from the State Bank governor regarding key economic indicators, has significantly boosted investor confidence, according to a post-market report by brokerage house Topline Securities.
Key contributors to the day’s gains included companies such as Lucky Cement (LUCK), Hub Power Company (HUBC), Oil and Gas Development Company (OGDC), Systems Limited (SYS), and Millat Tractors Limited (MTL), which collectively added 274 points to the index. Conversely, United Bank Limited (UBL), Habib Bank Limited (HBL), Bank AL Habib Limited (BAHL), Cherat Cement Company Limited (CHCC), and Meezan Bank Limited (MEBL) were the major laggards, collectively subtracting 143 points.
The MPC’s decision on Monday to cut the key interest rate from 17.5% to 15% follows a series of monetary easing measures that began in June 2024. The committee noted a faster-than-expected decline in inflation, which is now approaching its medium-term target range as of October. This decline is attributed to reduced food inflation, favorable global oil trends, and stable gas prices.
The 250 basis points rate cut exceeded the expectations of analysts and investors, who had anticipated a reduction of 200 basis points.
Top Volume:
| SCRIP | PRICE | HIGH | LOW | CHANGE | VOLUME |
|---|---|---|---|---|---|
| POWER | 7.74 | 8.0 | 7.1 | 0.67 | 66,262,505 |
| SSGC | 16.68 | 16.68 | 15.25 | 1.52 | 51,962,511 |
| FFL | 10.6 | 10.68 | 10.17 | 0.44 | 32,398,093 |
| PIAHCLA | 14.3 | 14.95 | 12.85 | 0.3 | 28,104,481 |
| MLCF | 41.7 | 42.99 | 40.8 | 0.15 | 27,524,316 |
| PTC | 16.62 | 16.72 | 15.21 | 1.3 | 27,225,611 |
| FCCL | 34.99 | 36.1 | 34.31 | -0.13 | 21,425,572 |
