PSX reaches new heights as KSE-100 Index crosses 116,000 points

The Pakistan Stock Exchange (PSX) achieved a historic milestone on Monday as the KSE-100 Index surpassed the 116,000-point mark for the first time ever.

According to a report by Samaa News on Monday, the trading session started strong, with the index hitting an intraday peak of 115,826.94 points before stabilizing at 115,443 points by midday.

This achievement builds on the previous week’s record-setting performance, where the index closed at 114,301 points, gaining 5,247 points.

The stock market is currently trading at 116,564.18 points, reflecting a gain of 2,262.38 points on the first day of the business week.

Market analysts attribute the surge to factors such as strong remittance inflows, decreasing inflation, and expectations of an interest rate cut by the State Bank of Pakistan (SBP), with the Monetary Policy Committee (MPC) set to announce its decision later today. Analysts foresee a rate reduction of 200 to 500 basis points.

The PSX’s outstanding performance reflects broader economic improvements. November’s inflation rate dropped to 4.9%, creating space for monetary easing. Additionally, the government’s reduction of National Savings Schemes (NSS) profit rates by 250 basis points is channeling funds into the stock market.

Remittances surged by 29% year-on-year to $2.9 billion in November, bolstering foreign reserves to $16.6 billion as of December 6, 2024. The SBP’s reserves rose to $12.051 billion, their highest since March 2022.

The Current Account Deficit (CAD) also narrowed significantly, plunging 79% year-on-year to $217 million in the first two months of FY2025, supported by stable exports and strong remittance inflows.