KARACHI – Pakistan Stock Exchange (PSX) continued its upward momentum on Wednesday, with the benchmark KSE-100 Index crossing the 105,000 level during early trading. By 10:20 a.m., the index had gained 856.84 points, reaching 105,415.91, a 0.82% increase, as investors remained optimistic about a potential further reduction in the country’s key policy rate.
This bullish sentiment was particularly evident in sectors such as oil and gas exploration, oil marketing companies (OMCs), power generation, and refineries. Stocks of key companies, including HUBCO, PSO, SSGC, PARI, OGDC, PPL, MEBL, and MCB, all saw gains.
The surge in the market is largely attributed to growing investor expectations that the State Bank of Pakistan (SBP) will announce a substantial rate cut in its upcoming monetary policy meeting on December 16, 2024. A report from Topline Securities, published on Tuesday, suggests the SBP could reduce the key policy rate by at least 200 basis points, following improvements in economic indicators and a slowdown in inflation.
Topline Securities noted that the high real interest rates, which stood at 1,010 basis points in November 2024—well above the historical average of 200-300 basis points—are further fueling expectations of a rate cut.
The positive momentum follows a strong performance on Tuesday, when the KSE-100 Index surged by nearly 1,300 points, closing above 104,000, marking a new all-time high.
In global markets, Asian equities faced pressure, with the KOSPI index in South Korea falling nearly 2% amid political unrest in the country. The South Korean won initially strengthened due to suspected government intervention but remained near its two-year low against the dollar. The MSCI Asia-Pacific index, which includes Samsung Electronics, dropped 0.32% on Wednesday
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