PSX continues record-breaking rally, KSE-100 Index hits all-time high

The Pakistan Stock Exchange (PSX) sustained its record-breaking momentum on Monday, with the benchmark KSE-100 Index closing at an all-time high of 84,910.29 points. 

The index surged by 1,378.34 points, or 1.65%, driven by positive economic indicators and robust buying in key sectors, particularly oil and gas. Analysts attributed the rally to improving macroeconomic conditions and speculation about a potential policy rate cut in the coming weeks. 

The market saw significant interest in index-heavy sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, and oil marketing companies (OMCs). Stocks like OGDC, PPL, ENGRO, PSO, and SNGP were among the top performers.

Sana Tawfik, Head of Research at Arif Habib Limited (AHL), highlighted a possible rate cut of 150-200 basis points, which is boosting market sentiment. She also noted that the upcoming corporate results season, expected to start next week, would likely sustain the bullish momentum.

The PSX's record gains come despite concerns over increased terrorist activity in the country. On Sunday, a terrorist attack targeting a convoy of Chinese workers near Karachi’s Jinnah International Airport resulted in the deaths of two Chinese nationals.

Despite the surge in terror-related incidents, the stock market has continued its upward trajectory. Last week, the KSE-100 Index saw a weekly increase of 2,239.83 points, crossing the 83,000-point threshold for the first time.

Global markets also rallied on Monday, with Asian stocks rising after strong US labour data eased recession fears. Meanwhile, the Pakistani rupee slightly depreciated against the US dollar, closing at Rs277.64 in the interbank market.