The Pakistan Stock Exchange (PSX) achieved a significant milestone on Wednesday, with the KSE-100 Index briefly soaring past the 86,000-point threshold. This surge was largely driven by robust buying activity in energy, cement, and other major sectors that heavily influence the index.
Bullish Momentum Fueled by Inflation Optimism
The continued upward trend in the stock market is a reflection of growing optimism among investors, particularly due to the larger-than-expected drop in inflation. Market experts believe that this has raised hopes for potential cuts in the policy rate during upcoming meetings of the Monetary Policy Committee (MPC). This positive sentiment has been a key driver in pushing the index to new highs.
Midday Rally
By 12:10 pm, the KSE-100 Index had climbed to an impressive 86,383.58 points, marking an increase of 719.61 points. Analysts are attributing this rally to investor expectations of substantial interest rate reductions, which they believe will further boost the market’s performance in the coming weeks.
Contrasting Global Markets
In contrast to the PSX’s bullish performance, Chinese stock markets experienced a sharp decline, with key indexes falling by more than 5%. This downturn came after a recent rally, highlighting the divergent trends in global markets as the PSX continues to surge while China faces challenges.
