Stocks extended their record-making streak on Wednesday, crossing the 105,000 points mark for the first time, driven by expectations of a significant interest rate cut by the State Bank of Pakistan (SBP) in its upcoming monetary policy meeting on December 16.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed 735.32 points, or 0.70%, to hit a new intraday high of 105,294.39, reflecting sustained confidence in the market’s upward trajectory.
The KSE-100’s record-breaking momentum reflects growing optimism around the economy as inflation continues to decline, creating room for further monetary easing.
Wednesday’s session follows Tuesday’s impressive gains when the market closed at 104,559.07, adding 1,284 points.
The SBP has already slashed interest rates by 700 basis points (bps) in four consecutive meetings since June, bringing the rate to 15%.
Experts anticipate another substantial reduction, potentially by 200 bps, in the upcoming policy meeting as inflation eases to its lowest level in over six years.
The CPI inflation for November clocked in at 4.9%, well below the SBP’s target range of 5-7%. With inflation expected to remain in single digits, the current policy rate of 15% provides significant room for further rate cuts.
