PSX nears record 90,000 mark as market sentiment remains bullish

PKR sees slight gains against USD, appreciating 0.07% to close at 277.64

The Pakistan Stock Exchange (PSX) continued its strong performance on Friday, with the KSE-100 index closing just shy of the historic 90,000-point milestone after reaching this level for the first time during intra-day trading. 

The index surged to a record high of 90,593.61 before late-session profit-taking saw it end slightly lower at 89,993.97, marking an impressive gain of 1,047.98 points or 1.18%.

Investor interest was particularly strong in key sectors such as automobile assembly, commercial banking, fertilisers, and oil and gas, with prominent stocks like OGDC, PPL, SSGC, NBP, and MEBL contributing significantly to the positive momentum.

The recent rally has been fuelled by optimism around Pakistan’s improving economic outlook and the anticipation of a policy rate cut from the State Bank of Pakistan (SBP) in its upcoming Monetary Policy Committee (MPC) meeting on November 4. 

Market analysts are expecting a rate reduction of at least 200 basis points with inflationary pressures easing and CPI inflation reported at 6.9% for September. This trend is expected to continue in October, with estimates suggesting a CPI range of 6.5% to 7%.

The bullish trend has been ongoing, with Thursday’s trading session also seeing a substantial rise as the index jumped 1,751.45 points, or 2.01%, to close at an all-time high of 88,945.99 points, supported by robust local and institutional buying.

Of the 457 companies traded on Friday, 181 saw gains, 222 declined, and 54 remained unchanged. Meanwhile, the Pakistani rupee showed slight gains against the US dollar, appreciating 0.07% to close at 277.64, up by Rs0.20.