Pakistan Stock Exchange (PSX) rally halts abruptly. The KSE-100 index reached a new high of over 117,000 points within minutes of opening on the first day of the trading week.

After closing at 116,169 on Monday, the market opened strong on Tuesday, with the index gaining 766 points to reach 116,936.

The index continued its upward trajectory, rising a further 64 points to surpass the 117,000 mark, setting a new record high.

However, this positive trend reversed sharply shortly afterward. The index experienced a significant drop of over 2400 points, eventually settling at approximately 113,600.7.

This fifth consecutive rate cut by the SBP reflects a supportive monetary policy aimed at stimulating economic activity, driven by November’s inflation rate dropping to its lowest point since 2018 (4.9%).

Analysts predict this shift will draw investment away from fixed-income securities and into equities, further invigorating the market.