The Pakistan Stock Exchange (PSX) saw a surge in momentum as the KSE-100 Index crossed the 94,000 level for the first time during intra-day trading on Monday. However, gains were short-lived as some profit-taking led to a pullback in the latter half of the session.
By the close of trading, the KSE-100 Index settled at 93,648.32, marking an increase of 356.64 points or 0.38%.
The initial boost was driven by strong buying in key energy stocks such as KE, OGDC, PPL, PSO, and SSGC. Market analysts attributed this rally to positive macroeconomic indicators, notably the State Bank of Pakistan’s historic policy rate cut of 250 basis points, reducing the rate to 15%.
Additionally, Pakistan’s standing in the latest MSCI quarterly review improved, with its weight rising to 4.4%, making it the second most liquid market in the MSCI Frontier Markets Index. Inflows of remittances also added support, with $3.1 billion recorded for October 2024.
Last week, the PSX experienced bullish momentum, largely driven by aggressive buying from local investors and institutional support. The KSE-100 Index saw an impressive weekly gain of 2,431.83 points, breaking previous records to close at an all-time high of 93,291.68.
Meanwhile, in global markets, Hong Kong stocks led declines in Asia after China’s latest stimulus measures disappointed investors. The Hang Seng Index dropped 2.5%, with Chinese property stocks down by 3.9%. In contrast, Bitcoin reached an all-time high amid expectations of a pro-crypto regulatory environment, driven by Donald Trump’s re-election and other crypto-friendly candidates winning congressional seats.
The US dollar held near its recent four-month peak, with traders focused on upcoming US inflation data and remarks from Federal Reserve officials, including a scheduled speech by Chair Jerome Powell on Thursday.
