The Pakistan Stock Exchange (PSX) continued its upward momentum on Tuesday as the benchmark KSE-100 index rose over 1,000 points during intraday trade.
According to the PSX website, the market opened higher and the KSE-100 index reached 90,904.56 points with a gain of more than 700 points.
At approximately 12:00 noon, the main index was hovering at 91,146.41, up 933.90 points, or 1.04%, from the previous close of 90,195.51 points.
A broad buying spree was seen in index-heavy cement and commercial banking sectors, with DGKC, MLCF, NBP, MEBL and SNGPL stocks trading in the green zone.
Market analysts attributed the recent upward momentum to the expectation of another interest rate cut by the State Bank of Pakistan (SBP) amid expectations of a decline in the inflation reading in October.
Many economists expect the RBA to cut its key interest rate by 200 basis points at the next Monetary Policy Committee meeting scheduled for November 4, 2024.
This will be the fourth consecutive reduction since June.
Investors’ optimism is also fueled by positive corporate earnings reports and encouraging economic indicators.
The PSX posted a net gain of 5.6% last week, with the KSE-100 hitting an all-time closing high of 89,993.96 points, near the 90,000 mark. This represents the highest weekly return in 27 weeks and the 47th highest weekly return since the index’s inception.