Karachi, December 4, 2024 – The Pakistan Stock Exchange (PSX) continued its record-breaking performance on Wednesday, surpassing the 105,000 milestone amid rising expectations of a policy rate cut due to the country’s declining inflation.
During intra-day trading, the benchmark 100-index surged by 553.36 points, reaching a record high of 105,112.43 points at 10:00 AM, compared to the previous close of 104,559.07 points. The index closed slightly lower at 105,104 points.
The optimism for a potential rate cut stems from the significant drop in inflation, which stood at 4.9% in November, the lowest level in over six and a half years. In October, the inflation rate had been 7.2%. This sharp decline has fueled expectations that the State Bank of Pakistan (SBP) will reduce the key policy rate when its Monetary Policy Committee (MPC) meets on December 16.
A potential rate cut is expected to ease borrowing costs for businesses and industries, further boosting economic activity. On Tuesday, the 100-index had already posted strong gains, adding 1,284.13 points, a 1.24% increase, to close at 104,559.07 points.
Trading volume on Wednesday was robust, with around 1.766 billion shares changing hands, up from 1.556 billion shares on the previous day. The total value of shares traded reached Rs 56.624 billion, compared to Rs 47.097 billion in the last trading session.
