In a striking rebound, Pakistan’s stock market rallied on Friday, with the benchmark KSE-100 Index jumping 1,893.09 points, or 2.13%, marking its largest one-day gain since June. The index closed at 90,859.85, signaling renewed investor optimism as the market eagerly awaits the central bank’s monetary policy review scheduled for Monday.
This positive momentum follows a two-day slump that had investors on edge. Market participants seized the opportunity to buy shares at lower prices, pushing the market to rally in anticipation of a significant interest rate cut. The State Bank of Pakistan (SBP) is widely expected to reduce its key interest rate by another 200 basis points to stimulate an economy grappling with high inflation and a sluggish recovery.
The sentiment remained resilient despite Friday’s inflation report, which showed consumer prices rose 7.17% year-over-year in October, up from 6.93% in September and slightly above market expectations of 6.8%. However, analysts note that the inflation uptick has not deterred bets on an interest rate cut, as the SBP appears committed to bolstering economic growth.
Intraday Trading and Market Performance
During Friday’s trading session, the KSE-100 Index saw an intraday range of 2,280.60 points, hitting a high of 91,133.28 (+2,166.52 points) and a low of 88,852.68 (-114.08 points). Trading volume for the index reached 230.03 million shares, underscoring a renewed buying appetite.
Among the 100 index companies, 72 posted gains, 27 declined, and 1 remained unchanged. Key performers included Cherat Cement Company Limited (CHCC) with an 8.07% increase, Sui Northern Gas Pipelines Limited (SNGP) up 7.52%, and Pakistan Petroleum Limited (PPL) rising 7.33%.
Conversely, notable decliners included Pakgen Power Limited (PGLC) down 9.38% and Fauji Foods Limited (FCEPL) falling 4.87%.
Index Contributions and Sector Performance
Major contributions to the KSE-100 Index came from United Bank Limited (UBL), which added 312.48 points, followed by PPL (+224.90 points), Oil & Gas Development Company (OGDC) (+154.12 points), Lucky Cement Limited (LUCK) (+111.87 points), and Pakistan State Oil (PSO) (+104.44 points).
Sector-wise, Commercial Banks led gains, adding 510.38 points to the index, while the Oil & Gas Exploration and Cement sectors also posted robust gains. Conversely, sectors like Leather & Tanneries, Property, and Paper & Packaging experienced slight declines, contributing minimally to the index’s overall performance.
Broader Market Overview
The broader All-Share Index closed at 57,872.06, gaining 958.37 points or 1.68%. Total trading volume across all shares was 465.87 million, a slight decrease from the previous session’s 546.27 million shares. Overall, there were 222,179 trades involving 430 companies; 220 advanced, 156 declined, and 54 remained unchanged.
Leading the market in terms of volume, Silk Bank Limited (SILK) recorded 62.5 million shares traded, although its price dipped 14.54%. K-Electric Limited (KEL) and Worldcall Telecom Limited (WTL) also saw heavy trading with 57.57 million and 27.21 million shares traded, respectively.
Year-to-Date Market Gains
The KSE-100 Index has seen impressive growth this fiscal year, gaining 12,415 points or 15.83%. The momentum extends into the calendar year with a 45.49% increase, representing a gain of 28,409 points.
As investors anticipate Monday’s policy decision, market watchers are optimistic that further rate cuts could sustain this upward trajectory, bolstering the economy and encouraging renewed investment activity in Pakistan’s equity markets.
