Pakistan stocks rally continues as market crosses record 104,000 points

Stockbrokers watch an index board showing the latest share prices during a trading session at the Pakistan Stock Exchange (PSX) in Karachi, Pakistan, on September 20, 2021. (AFP/ File)

• The benchmark KSE-100 index gained 1,284 points, or 1.24 percent, to close at 104,559 points on Tuesday
• The development came amid slowing annual inflation, narrowing trade deficit and increasing exports

ISLAMABAD: The Pakistan Stock Exchange (PSX) on Tuesday continued its momentum and surged by more than 1,000 points to close at another record high, with stock analysts attributing it to upbeat economic data and a possible policy rate cut.
The benchmark KSE-100 index gained 1,284 points, or 1.24 percent, to close at 104,559 points on Tuesday afternoon, compared to the previous day close of 103,274 points.
The development came as Pakistan’s annual consumer inflation slowed to 4.9 percent in November, amid a narrowing trade deficit and increasing exports.
“Upbeat data on $8.65 billion trade deficit narrowing by 7.4 percent, and $13.69bn exports, up by 12.57 percent, for Jul-Nov 2024 played a catalyst role in record surge at PSX,” Ahsan Mehanti, chief executive officer (CEO) of Arif Habib Corporation, told Arab News.
Consumer inflation cooled from 7.2 percent in October, a sharp drop from a multi-decade high of nearly 40 percent in May 2023. The South Asian country also slashed interest rates by 250 basis points earlier in November to help revive a sluggish economy amid a big drop in the rate of inflation.
Mehanti said the bullish trend was led by scrips across the board as investors eyed big policy rate cut next week.
The PSX breached the 100,000-mark for the first time ever on November 28 to close at 100,082 points.