Bullish momentum persisted at the Pakistan Stock Exchange (PSX) on Wednesday, with the KSE-100 index gaining nearly 500 points to surpass 105,000, fueled by investor optimism following a decline in inflation.
The benchmark KSE-100 index rose by 495.37 points, or 0.47%, reaching 105,054.44 points, up from the previous close of 104,559.07 points at 10:34 am.
This surge follows data from the Pakistan Bureau of Statistics revealing a drop in inflation to 4.9% in November, the lowest level since 2017.
Earlier in the session, the PSX saw a gain of 903.57 points, reaching 105,462.64 points at 10:25 am, but briefly dipped to 104,940.39 points during intraday trade.
On Tuesday, trade value in the ready market surged to Rs57 billion ($203 million), the highest in 18 years, according to Topline Securities Ltd.
The continued bullish trend is mainly driven by growing investor confidence, spurred by expectations of a significant interest rate cut in the upcoming monetary policy meeting scheduled for Dec 16. Additionally, the country’s trade deficit for November narrowed by 19% year-on-year to $1.59 billion, thanks to an increase in exports and a decline in imports, further boosting optimism about a potential current account surplus.
