Another record high: KSE-100 settles above 103,000 with 1,900-point gain

The benchmark KSE-100 Index continued to scale new peaks, crossing the 103,000 level to settle at a new all-time high following a gain of over 1,900 points during trading on Monday.

At close, the benchmark index settled at 103,274.94, an increase of 1,917.62 points or 1.89%.

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

Experts have attributed the recent run to the lower inflation reading expectation for November, which raised hopes of another policy rate cut in the upcoming Monetary Policy Committee (MPC) meeting scheduled for December 16.

Later in the session, 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%.

The KSE-100 saw another round of buying after the data was released.

However, the market has seen a bull run for a while, and experts say a combination of exchange rate stability, 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 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 to close at its new highest-ever level of 101,357.32.

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%.

Meanwhile, the Pakistani rupee registered a marginal increase against the US dollar, appreciating 0.03% in the inter-bank market on Monday. At close, the currency settled at 277.97, a gain of Re0.08 against the greenback.

Volume on the all-share index increased to 1,556.25 million from 915.51 million on Friday.

The value of shares rose to Rs47.10 billion from Rs35.98 billion in the previous session.

WorldCall Telecom was the volume leader with 213.51 million shares, followed by Cnergyico PK with 196.91 million shares, and Fauji Foods Ltd with 68.32 million shares.

Shares of 462 companies were traded on Monday, of which 339 registered an increase, 85 recorded a fall, while 38 remained unchanged.