Stock rally: KSE-100 crosses 113,000 as buying spree continues

The Pakistan Stock Exchange continued its record-breaking run as the benchmark KSE-100 Index crossed the 113,000 mark for the first time in history during intraday trading on Thursday.

Buying momentum persisted throughout the trading session, driving the KSE-100 to an intra-day high of 113,612.28.

At 2:30pm, the benchmark index was hovering at 113,501.21, an increase of 2,691 points or 2.43%.

The bullish momentum was fueled by across-the-board buying in key sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, power generation and refineries. Index-heavy stocks including HUBCO, SSGC, SNGP, PPL, OGDC, MARI, ENGRO, HBL, MCB and NBP traded in the green.

Experts have attributed the ongoing buying spree to multiple factors, including robust economic indicators, global crude oil prices and recovery in global equities on receding geopolitical tensions.

“From 40k to 112k in just 18 months – a stellar 180% return,” said Mohammed Sohail, CEO of Topline Securities, in a note.

“This marks the best comeback in Pakistan stock market’s 75-year history, tripling in value and showcasing unmatched resilience,” he added.

Market participants are also monitoring the upcoming Monetary Policy Committee (MPC) meeting, with a widespread expectation of a significant interest rate cut.

In a key development, the Asian Development Bank (ADB) revised upward Pakistan’s GDP growth projection for fiscal year 2025, raising it to 3% from 2.8%, while the inflation forecast was revised downward to 10% from 15% in FY24.

On Wednesday, equities had posted a strong recovery supported by healthy buying activity from local investors. The KSE-100 Index increased by 1,913.57 points, or 1.76%, to close at a new peak of 110,810.22 points.

Globally, Asian stocks gained on Thursday, tracking Wall Street’s tech-led rally overnight after an as-expected reading of U.S. consumer inflation cemented bets for a Federal Reserve interest-rate cut next week.

Japan’s Nikkei topped 40,000 for the first time since mid-October, led by advances in chip-sector shares. The exporter-heavy index also got a boost from a weakening yen, as traders pared bets for a Bank of Japan rate hike next week.

The tech-heavy Nikkei jumped 1.5% as of 0202 GMT, while the broader Topix climbed 1.2%.

South Korea’s KOSPI added 0.7%, while Taiwan’s benchmark gained 1%.

Hong Kong’s Hang Seng advanced by 0.4%, and mainland blue chips advanced by 0.2%.

Overnight, the tech-focused Nasdaq shot up 1.8% to close above 20,000 for the first time, while the S&P 500 climbed 0.8%.

This is an intra-day update