ISLAMABAD: The Pakistan Stock Exchange (PSX) surged over 700 points on Monday, reaching a record high as it resisted early calls for a technical correction, according to analysts.
The PSX’s benchmark KSE-100 index gained 729 points during intraday trading, climbing to 94,020 points from the previous close of 93,291.68.
Analysts said that the energy sector was the primary driver behind the index’s rise, supported by a rally in previously underperforming high-beta stocks.
“The market has so far resisted early calls for a technical correction, though one remains possible given the index’s steep rise this quarter,” they noted.
Earlier, The Pakistan Stock Exchange (PSX) continued its upward trend on Monday, with the KSE-100 Index gaining over 500 points in early trading hours.
By 9:50 am, the benchmark index had risen 506.10 points, or 0.54%, reaching 93,797.78. Strong buying interest was seen in heavyweight sectors like energy and banking, with stocks like MEBL, MCB, KE, OGDC, PPL, PSO, and PRL trading in positive territory. At 10:37 am, the KSE-100 index briefly breached 94,000 level, hitting a record high mark.
Market experts credited this momentum to several favorable economic developments, including the State Bank of Pakistan’s historic 250 basis points rate cut, which lowered the policy rate to 15%.
Additionally, Pakistan’s weight in the MSCI index rose to 4.4% in the latest quarterly review, now making it the second most liquid market in the MSCI FM. Furthermore, remittances reached $3.1 billion in October 2024, providing added support for the economy.
The previous week saw a strong bullish trend at PSX, with the KSE-100 index surging by 2,431.83 points week-on-week to close above the 93,000 mark for the first time in history, reaching a record 93,291.68, largely driven by robust local investor and institutional buying.
Globally, however, markets were mixed. Hong Kong’s stocks led declines in Asia on Monday as Beijing’s latest stimulus measures fell short of investor expectations, overshadowing Wall Street’s recent record highs. Bitcoin also hit an all-time high following Donald Trump’s victory in the U.S. presidential election, alongside several pro-crypto candidates gaining seats in Congress, fueling hopes for a more favorable regulatory environment for digital assets.
Meanwhile, the dollar held near last week’s four-month peak against other major currencies as investors awaited key U.S. consumer inflation data and remarks from Federal Reserve officials, including Chair Jerome Powell, later this week. Hong Kong’s Hang Seng index fell by 2.5% as of 0200 GMT, with Chinese property stocks dropping 3.9%, while Chinese blue-chip stocks dipped by 0.3%, as investors anticipated Trump’s second term could bring tax cuts and looser regulations, supporting equities.
