Stocks Surge to Record as Rate Cut Hopes Drive Sentiment

The Pakistan Stock Exchange (PSX) extended its record-breaking run on Monday, with the KSE-100 Index surpassing 155,000 points for the first time in history.

The benchmark index was seen at 155,551.95 points at 10am, marking a gain of 1,274.76 points or 0.83%. Buying activity was widespread, with oil and gas, banking, cement and power companies leading the advance. Blue-chip stocks such as MARI, POL, LUCK, and MEBL all traded positively.

Investor optimism is being fuelled by easing inflation numbers, raising hopes of a future rate cut. “Markets anticipate caution from the State Bank, but improving data underpins the positive mood,” said a note from the Bank of Punjab.

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The rally continues last week’s momentum, when the PSX surged 3.8%, adding over 5,600 points. Analysts say a mix of local investor appetite, the PM’s diplomatic outreach to China, and stable macroeconomic conditions have kept sentiment buoyant.

International markets also showed resilience. Asian equities climbed, with Japan’s Nikkei index up 1.8% despite political uncertainty triggered by Prime Minister Shigeru Ishiba’s resignation. The yen slipped to 148.39 per dollar, while US markets ended last week weaker on labour data concerns.