Stocks extend rally to hit new all-time high above 86,400 points in intraday trade
1. KSE-100 Shares Index hits intraday high of 86,437 points, up 773 points
Stocks extended their winning streak on Wednesday, buoyed by the finance minister's optimistic forecast that inflation and policy rates would continue to decline.
The Pakistan Stock Exchange's (PSX) KSE-100 Index reached an intraday high of 86,437 points, gaining 773 points by 11:58 PM.
This surge fueled economic optimism, further supported by reports that Saudi Arabia was poised to sign $2 billion in agreements with Pakistan.
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Tuesday, signaled a further reduction in consumer inflation and central bank policy rates in the coming months.
“The government has worked hard to achieve economic stability,” said the finance minister, emphasizing that the coalition's efforts were beginning to bear fruit.
Investors turned to key stocks in sectors like automobiles, commercial banks, fertilizers, and oil and gas exploration and marketing.
Blue-chip companies such as Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), Oil and Gas Development Company (OGDC), Fauji Fertilizer Company (FFC), National Bank of Pakistan (NBP), and Habib Bank Limited (HBL) were among the top performers.
The finance minister also announced that long-awaited structural economic reforms were now underway, predicting further easing of inflationary pressures and a continuation of the central bank’s cautious monetary stance. “Inflation has dropped to single digits,” Aurangzeb noted, expecting it to fall even lower.
The Consumer Price Index (CPI)-based inflation dropped to 6.9% year-on-year in September 2024, the lowest since January 2021, down from 9.6% in August. This decline was driven by a high base effect, softer commodity and energy markets, and a stable currency, according to the Pakistan Bureau of Statistics (PBS).
In response, the State Bank of Pakistan’s Monetary Policy Committee cut the key policy rate by 200 basis points, bringing it down to 17.5% from 19.5%, after significant drops in both headline and core inflation over the past two months.
