Buying spree continues: KSE-100 surges past 103,000 points

Buying momentum persisted at the Pakistan Stock Exchange (PSX), as the benchmark KSE-100 index crossed the 103,000 level for the first time following a gain of nearly 1,800 points during the intra-day trading on Monday.

At 2:30pm, the benchmark index was hovering at 103,092.81, an increase of 1,735.49 points or 1.71%.

Buying was witnessed in key sectors including automobile assemblers, cement, commercial banks, fertilizer, oil and gas exploration companies, OMCs and refineries. Index-heavy stocks including HUBCO, PRL, SSGC, ODGC, PPL, MEBL and NBP traded in the green.

Experts said investors anticipate lower inflation readings for November, raising hopes of another policy rate cut in the upcoming Monetary Policy Committee (MPC) meeting.

Later in the day, data released by the Pakistan Bureau of Statistics (PBS) showed that the country’s headline inflation clocked in at 4.9% on a year-on-year basis in November 2024, lower than the reading in October 2024 when it stood at 7.2%.

Meanwhile, the stock market has been on an upward trajectory in recent weeks.

Experts say a combination of exchange rate stability, a transition from one $3-billion Stand-By Arrangement to another longer facility with the International Monetary Fund (IMF), improvement in index-heavy sector’s earnings, and a general mood for stocks after monetary easing have been just a few factors behind the KSE-100’s phenomenal rise.

During the previous week, PSX made new history and achieved its historic milestone by surpassing the 100,000 mark to hit new highest-ever levels during the outgoing week ended on November 29, 2024, on the back of the strong interest of local investors coupled with institutional support.

The benchmark KSE-100 index surged by 3,559.09 points on a week-on-week basis and crossed 100,000 historic level to close at its new highest-ever level of 101,357.32 points.

Globally, Asian stocks climbed on Monday, buoyed by record-high closes on Wall Street, while the dollar bounced back from multiweek lows against the yen and British pound in a crucial week for the US interest rate outlook.

Chinese shares got an additional boost from a robust reading in a private manufacturing survey on Monday, confirming strength in the official data on manufacturing from the weekend.

Incoming US President Donald Trump provided the US dollar support by warning the BRICS emerging nations against trying to replace the greenback with any other currency.

Hong Kong’s Hang Seng gained 0.9%, and mainland Chinese blue chips added 0.6% as of 0153 GMT.

The Federal Reserve is also in focus, with Friday’s monthly payrolls report set to inform the central bank of whether to cut rates again on Dec. 18.

Several Fed officials are due to speak this week, including Fed Chair Jerome Powell on Wednesday. Traders currently put the odds of a quarter-point reduction at about 66%.

This is an intra-day update