The Pakistan Stock Exchange (PSX) reached a historic milestone on Monday as the benchmark KSE-100 Index surged above the 116,000-point mark for the first time ever, closing with a gain of 1,867.61 points or 1.63%. The bullish sentiment dominated the session, with the index hitting an intra-day high of 116,681.59 before settling at 116,169.41.
Investor enthusiasm was driven by anticipation of further monetary easing, with the State Bank of Pakistan’s Monetary Policy Committee (MPC) meeting scheduled later in the day. Market optimism grew amid expectations of another policy rate cut, underpinned by declining inflation and lower Treasury bill yields. In the latest auction, yields on 3- and 6-month T-bills dropped to 12%, marking a decline of 100 and 89 basis points, respectively.
Key sectors driving Monday’s rally included automobile assemblers, oil and gas exploration companies, and refineries. Energy stocks like MARI, OGDC, POL, and PSO posted significant gains. However, some profit-taking was observed in commercial banks and fertilizers, with heavyweight stocks such as HBL, MCB, and ENGRO closing in the red.
The strong performance on Monday followed a record-breaking week for the PSX, during which the KSE-100 Index gained 5,247.85 points on a weekly basis, settling at an all-time high of 114,301.80 points. The surge was supported by robust local investor activity and institutional buying.
All eyes are on the Federal Reserve’s policy meeting this Wednesday, with at least a 25 basis points rate cut widely expected. However, market participants are keenly awaiting the Fed’s future guidance, particularly its “dot plot” projections for interest rates.
The PSX’s record-breaking rally highlights growing investor confidence in Pakistan’s economic trajectory, as favorable macroeconomic indicators fuel optimism for sustained growth in the months ahead.
