The Pakistan Stock Exchange’s benchmark index gained 356.64 points on Monday to close at close at 93,648.33 points as compared to 93,291.68 points on the last trading day.

According to the PSX website, the KSE-100 index saw a positive change of 0.38 per cent.

A total of 815,188,409 shares were traded during the day as compared to 763,255,174 shares the previous trading day whereas the price of shares stood at Rs37.324 billion against Rs30.206 billion on the last trading day.

As many as 454 companies transacted their shares in the stock market, 227 of them recorded gains and 184 sustained losses, whereas the share price of 43 companies remained unchanged.

In the intraday trading, the benchmark index soared to a new record when it surged by 526 points and briefly surpassed the 94,000-point mark.

The robust rally followed a significant increase of over 2,400 points in the previous week, primarily driven by the State Bank of Pakistan’s (SBP) decision to cut its policy rate by 2.5 percentage points. Analysts viewed this rate cut as a positive indicator for liquidity and economic stability, bolstering investor confidence.

In addition to the rate cut, the government’s recent Sukuk auction raised substantial capital, with yields across all tenors contracting, reflecting strong investor appetite for government-backed securities.

On the economic front, workers’ remittances reached $3.1 billion, while SBP’s foreign exchange reserves increased by $18 million to $11.17 billion. In a historic rally on Friday, stocks climbed past the 93,000 mark for the first time, buoyed by rising global equities and declining local lending rates.

The KSE-100 Index closed the week at 93,292, marking a significant week-on-week increase of 2,432 points, or 2.7%. Muhammad Waqas Ghani, Deputy Head of Research at JS Global, noted that average trading volumes surged by 31%, reaching 735 million shares.

The SBP’s decision to lower its policy rate to 15% was influenced by a continuing decline in inflation, marking the fourth consecutive rate cut in the current monetary easing cycle, totaling a cumulative reduction of 700 basis points from a peak of 22%.

Adding to the market’s momentum, eight Pakistani companies were included in the MSCI Frontier Markets Small Cap Index, which is expected to attract global investors and boost foreign fund inflows.

However, the Federal Board of Revenue (FBR) reported a shortfall in income tax collection for the first four months of FY25. Meanwhile, the government is finalizing its strategy for upcoming discussions with the International Monetary Fund (IMF) from November 11 to 15.

Prime Minister Shehbaz Sharif has also dispatched a special delegation to Saudi Arabia to finalize agreements worth $2.8 billion recently established between the two nations.

According to SBP data, remittances for October 2024 reached $3.05 billion, reflecting a 24% year-on-year increase. AHL Research reported that the KSE-100 index’s stellar performance was driven by the SBP’s historic 250-basis-point cut in the policy rate.

In the quarterly MSCI review, Pakistan’s weight in the MSCI Frontier Markets Index rose to 4.4%, solidifying its position as the second most liquid market.

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The government raised Rs339 billion through Ijarah Sukuk, with yields declining between 43 and 104 basis points. Throughout the week, the Pakistani rupee remained stable, closing at Rs277.95 against the US dollar.

Sector-wise, notable contributors to the index included fertilizers (505 points), cement (404 points), power generation and distribution (376 points), oil and gas exploration companies (320 points), and automobile assemblers (288 points). However, foreign selling amounted to $4.65 million, contrasting with net buying of $1.97 million the previous week.