KARACHI: The Pakistan Stock Exchange (PSX) reached a historic milestone on Tuesday, as the benchmark KSE-100 Index surged by nearly 1,300 points, closing above the 104,000 mark for the first time.

The index finished at 104,559.07 points, marking an increase of 1,284.13 points or 1.24% from the previous session. Key sectors such as automobile assemblers, fertilizer, oil and gas exploration companies, OMCs, and refineries saw significant buying activity. Major index-heavy stocks including HUBCO, PSO, SSGC, MARI, OGDC, FFC, ENGRO, MCB, and NBP all closed in positive territory, contributing to the overall rise. Experts attributed the market’s upbeat performance to expectations of a further rate cut by the State Bank of Pakistan (SBP) following a decline in inflation. November 2024’s Consumer Price Index (CPI) inflation was recorded at 4.9%, the lowest in nearly six years, fueling optimism among investors that the SBP will announce another policy rate cut during its upcoming meeting on December 16.

Topline Securities noted that the PSX’s upward momentum was bolstered by falling yields on fixed-income securities and signs of macroeconomic stability. The total traded value on the ready market reached Rs57 billion ($203 million), the highest in 18 years. On Monday, the KSE-100 had already crossed the 103,000 mark, gaining over 1,900 points, setting a new all-time high. Meanwhile, the Pakistani rupee gained slightly against the US dollar, appreciating by 0.04% to settle at 277.87 in the inter-bank market. Volume on the all-share index rose to 1.77 billion shares, up from 1.56 billion on Monday, with 271 companies showing gains, 160 declining, and 34 remaining unchanged. Cnergyico PK led in trading volume, followed by WorldCall Telecom and Hascol Petrol.