Bulls in Control at PSX as KSE-100 Index Gains Nearly 4,000 Points

The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) gained 3,908 points or 3.39 percent on Monday to close at 115,259 points.   The over 3,900-point increase represents the third highest-ever single-day gain only behind the 4,695-points gain witnessed on November 27, 2024 and last Monday’s 4,411 points surge. Nine out of the top ten highest single-day gains have been recorded in 2024 with four of the top five coming since November 27, 2024. Brokerage house Topline Securities said that this upward momentum was fueled by optimism surrounding anticipated increases in equity fund allocations by local institutions ahead of the new year.  Adding further impetus was a statement from the finance minister over the weekend, suggesting a potential decline in interest rates to single-digit levels in the future. While the ultimate decisions lie with the Monetary Policy Committee, the Minister’s remarks boosted market confidence and optimism about the economic outlook, the brokerage house said.  Major contributors to the index’s rise included HBL, DAWH, MCB, ENGRO, and MARI, collectively adding 1,265 points to the day’s performance, it added. A total of 1,023,501,044 shares were traded during the day as compared to 815,920,043 shares the previous day. The price of shares stood at Rs. 40.28 billion against Rs. 32.9 billion on the last trading day.     465 companies transacted their shares in the stock market today with 333 recording gains and 84 sustaining losses, whereas the share price of 48 companies remained unchanged.  Earlier in the day, the National Accounts Committee (NAC) approved Q1 growth for FY2024-25 with the economy posting a growth of 0.92 percent. The growth in agriculture, industry and services stood at 1.15 percent, -1.03 percent and 1.43 percent respectively.  Worryingly, During Q1, crops contracted by 5.93 percent. The contraction of 11.19 percent in important crops was due to reduction in the production of cotton (-29.6 percent), maize (-15.6 percent), rice (-1.2 percent), and sugarcane (-2.2 percent).  The rate of contraction in industry slowed down from 4.43 percent in Q1FY24 to 1.03 percent in Q1FY25.