The Pakistan Stock Exchange (PSX) reached a historic milestone on Monday as the KSE-100 Index crossed the 116,000-point mark for the first time.
According to Samaa News, the trading session began on a strong note, with the index peaking at an intraday high of 115,826.94 points before settling at 115,443 points by midday.
This achievement builds on last week’s record-breaking performance, where the index closed at 114,301 points, gaining 5,247 points in total. As of now, the KSE-100 Index is trading at 116,564.18 points, reflecting a remarkable gain of 2,262.38 points on the first day of the business week.
Market analysts credit the surge to multiple factors, including strong remittance inflows, falling inflation, and expectations of an interest rate cut by the State Bank of Pakistan (SBP). The Monetary Policy Committee (MPC) is expected to announce its decision later today, with analysts predicting a rate cut between 200 and 500 basis points.
November’s inflation rate dropped to 4.9%, providing room for monetary easing. Additionally, the government’s recent decision to lower National Savings Schemes (NSS) profit rates by 250 basis points is channeling funds into the stock market.
Remittances also surged by 29% year-on-year in November, reaching $2.9 billion. This boost helped foreign reserves climb to $16.6 billion as of December 6, 2024, with the SBP’s reserves hitting $12.051 billion, their highest level since March 2022.
The Current Account Deficit (CAD) saw a significant improvement, shrinking 79% year-on-year to $217 million in the first two months of FY2025, supported by stable exports and robust remittance inflows.
The PSX’s outstanding performance reflects broader economic stability and investor optimism, setting a strong tone for future growth.
