KARACHI: The Pakistan Stock Exchange (PSX) continued its upward momentum on Monday, with the benchmark KSE-100 index gaining over 570 points.

The index hit an intra-day high of 116,276.42 before closing at 115,844.81, marking a rise of 572.73 points or 0.5%. This positive movement was largely driven by increased investor confidence, which was bolstered by political stability and reduced uncertainties. Additionally, expectations of a possible rate cut in the upcoming monetary policy meeting on January 27, 2025, further fueled market optimism. Key contributors to the day's gains included ENGROH, FFC, MEBL, SEARL, and MLCF, which together added 449 points to the index. Conversely, losses in stocks such as MARI, PPL, SYS, PSO, and BAFL reduced the gains by 182 points. Analysts noted that while the market's upward trend could persist, political developments will play a crucial role in determining short-term market direction. Attention is also on the new U.S. administration, which took office on Monday, as market participants are eager to see any potential impact on Pakistan's political dynamics.

There are also speculations regarding a possible 100bps rate cut in the upcoming monetary policy meeting, though any smaller reduction may have a negative effect on the market. In the previous week, the KSE-100 index had already posted strong gains, surging by over 2,000 points. Volume on Monday increased to 675.05 million shares, with the total value of shares traded rising to Rs37.53 billion. Lotte Chemical led trading in terms of volume, followed by Bank Makramah and WorldCall Telecom. Out of 454 companies traded, 241 saw gains, 157 recorded losses, and 56 remained unchanged.