KSE-100 index gains 876 points amid cut in policy rate

The Pakistan Stock Exchange opened the week with renewed momentum, extending the bullish momentum carried over from last week. Investor sentiment remained upbeat as market participants positioned themselves ahead of the Monetary Policy Committee decision.

The sentiment was largely driven by a sustained buying interest in energy stocks, alongside optimism surrounding expectation that the MPC would announce a considerable cut in interest rate that kept the environment upbeat.

The session kicked off sharp as the index traded between an intra-day high of 171,001.71 and a low of 170,292.95, indicating active participation throughout the trading day. Ultimately, benchmark KSE-100 index advanced by 876.82 points, registering a 0.52% increase, and closed at 170,741.35. 

Later in the day, the State Bank of Pakistan announced to cut the policy rate by 50 basis points to 10.5%, effective from December 16, 2025.

In its market wrap, KTrade Securities wrote that PSX kicked off the week on a strong footing, extending the positive momentum seen in recent sessions. The KSE-100 index gained 876 points (+0.52% DoD) to close at 170,741, marking a new all-time high, as sustained buying interest kept the market firm throughout the day. 

Read More: SBP cuts policy rate by 50 basis points to support growth amid contained inflation

Sector performance was led by oil & gas, technology, and cement stocks. Pakistan Petroleum emerged as the single largest contributor to the index’s advance, while Systems Limited, Maple Leafe Cement, National Bank, United Bank, and Oil and Gas Development Company also made notable positive contributions, it said.

Market activity remained healthy, as outlook remains constructive, supported by several positive developments including the SBP’s 50basis points rate cut to 10.50%, partial progress on resolving power sector circular debt, and renewed US investment commitments in the Reko Diq project. Together, these factors are expected to sustain positive sentiment in the near term, KTrade mentioned.

Overall trading volume increased to 905.6million shares, a jump from previous week’s total of 873 million. Value of traded shares stood at Rs47.7billion. Shares of 486 companies were traded. Of these, 239 closed higher, 202 dropped and 45 remained unchanged. Pakistan International Bulk Terminal emerged as volume topper with trading in 123.3million shares, gaining Rs1.56 to close at Rs17.19.