This was the first ever in the history of the Pakistan Stock Exchange (PSX) when the benchmark KSE-100 Index, after a record-making advance of 109,970.38 points, went up 916.43 points or 0.84%. The milestone would signal investor confidence buoyed by macroeconomic indicators that are improving as market sentiment remains favorable.
At one stage during the day, the index went below 1,000 points due to pressure in the banking sector. However, the momentum of buying returned on some strength in cement, fertilizers, automobile assemblers, and companies engaged in oil and gas exploration. The key stocks traded in the green: include ENGRO, OGDC, and HUBCO, which highly contributed to gains.
Economic Indicators Improve Market Sentiment
Market analysts have attributed the rally to falling inflation, which stood at 4.9% in November, coupled with interest rate cut expectations from the central bank. Plus, stability in the exchange rate and the rising foreign exchange reserves have marked the confidence booster.
The banking sector, on the other hand, continued under pressure due to plans from the government in its attempt to address the ADR through a high-level committee. Investors remained uncertain over possible regulatory changes that dampened sentiment in this sector.
High Trading Volume and Global Impact
The trading session saw activity of 1.59 billion shares with a traded value of Rs60.25 billion, disclosing strong market activities. The most active trading was seen in K-Electric Ltd with 164.51 million shares, followed by WorldCall Telecom and Cnergyico PK.
Worldwide caution about optimism was there, though markets were waiting for very pivotal central bank meetings and U. S inflation; however, positive domestic sentiments and institutional support ensured a continuous uptrend in the Pak Stock exchange in their books.
PSX Performance Historic
The economic recovery accompanied by prudent fiscal policies underwrites healthy investor appetite for equities. Further speed on roads is seen ahead as news of the central bank’s monetary policy announcement is all to create an upbeat sentiment among shareholders worldwide.
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