KARACHI: Pakistan’s stock market surged to new highs on Monday as investors anticipated a major rate cut by the State Bank of Pakistan (SBP) during its upcoming policy review. The KSE-100 Index climbed 1,078.15 points, or 1.19%, to close at a record 91,938.00, marking another high in its ongoing rally.
Market Performance and Highlights:
- Intraday Movement: The KSE-100 Index maintained a positive trajectory throughout the day, reaching an intraday peak of 92,159.08 points (+1,299.23) and a low of 91,395.35 points (+535.50).
- Trading Volume: A robust trading volume of 311.38 million shares was recorded for the KSE-100 Index.
- Market Breadth: Of the 100 companies in the index, 73 closed higher, 25 declined, and one remained unchanged.
Top Movers:
- Top Gainers: Major gainers included AGP (+9.36%), SYS (+9.35%), CHCC (+8.85%), PABC (+7.57%), and AIRLINK (+7.44%).
- Top Losers: On the downside, PGLC (-7.96%), NBP (-3.38%), PPL (-2.72%), MCB (-2.53%), and BNWM (-2.14%) led the laggards.
Sector-Wise Contributions:
- Positive Sectors: Cement (+356.27 points), Technology & Communication (+301.99 points), Power Generation & Distribution (+114.04 points), Fertilizer (+99.91 points), and Pharmaceuticals (+83.10 points) contributed to the index’s gains.
- Negative Sectors: Commercial Banks (-123.77 points), Oil & Gas Exploration Companies (-56.80 points), and smaller sectors like Leather & Tanneries, and Automobile Parts & Accessories saw declines.
Wider Market Indicators:
- The All-Share Index closed at 58,408.13 with a net gain of 536.07 points, or 0.93%.
- Total market volume reached 589.55 million shares, reflecting a strong increase from the previous session’s 465.87 million, with a total traded value of Rs29.96 billion.
- A total of 296,167 trades were reported across 444 companies, with 258 stocks advancing, 139 declining, and 47 remaining unchanged.
Top-Traded Stocks by Volume:
- POWER – Rs7.12 (+15.77%) with 56.7 million shares
- KEL – Rs4.85 (+3.85%) with 38.9 million shares
- MLCF – Rs41.53 (+7.09%) with 36.9 million shares
- WTL – Rs1.21 (-0.82%) with 22.8 million shares
- PPL – Rs147.77 (-2.72%) with 21.6 million shares
KSE-100 Index Performance:
- The KSE-100 has risen by 13,493 points, or 17.20%, in the current fiscal year.
- Calendar-year gains are even more impressive, with an increase of 29,487 points or 47.22%.
Investors are eagerly awaiting the SBP’s monetary policy announcement, anticipating that further rate cuts could fuel additional gains across key sectors, particularly in equities and corporate financing. The continued rally underscores investor optimism about Pakistan’s economic outlook amid easing inflation and central bank support for growth.
PKR and Gold Update: PKR Declines as Gold Rises Amid Election and Market Uncertainty
The Pakistani rupee (PKR) inched down by 0.03% against the US dollar on Monday, settling at PKR 277.79 in the interbank market compared to the previous close of PKR 277.70. The currency fluctuated slightly, hitting an intraday high of 277.90 and a low of 277.80. Meanwhile, the open market saw the dollar quoted at 276.80 for buying and 278.63 for selling.
Gold Prices Rally Amid Global Economic and Political Uncertainty:
In Pakistan, the price of gold continued its upward trend, reaching Rs283,700 per tola (24-karat) on Monday—a Rs700 increase. On the international front, spot gold moved to $2,740 per ounce, marking a slight increase of 0.06%. The Karachi Sarafa Association also noted a rise in domestic prices, reporting 24-karat gold at Rs243,227 per 10 grams and 22-karat gold at Rs222,958.
Global Factors Impacting Gold Prices:
Several factors are contributing to gold’s recent rally:
- Weaker US Dollar: A softening USD has bolstered demand for gold, which is traditionally priced in USD. The currency has been influenced by investor repositioning, particularly as the political landscape in the US remains highly uncertain.
- Political Uncertainty in the US: According to a recent Bloomberg survey, gold prices may see a continued upward trend if Republican candidate Donald Trump prevails in the US presidential race. Analysts suggest that Trump’s policies could lead to higher inflation, favoring gold as a hedge. Conversely, if Vice President Kamala Harris wins, gold could see a retreat, with current forecasts suggesting a highly competitive race.
- Safe-Haven Demand: As geopolitical tensions persist, especially around the Middle East, gold’s appeal as a safe-haven asset remains strong. This trend is further supported by speculation that the US Federal Reserve may consider rate cuts if political uncertainty results in market volatility.
The current global landscape underscores gold’s traditional role as a stable asset during economic and political upheaval, and analysts foresee that these trends could continue, especially as major events, such as the US elections, play out in the coming months.
