Islamabad, Dec 30: The Pakistan Stock Exchange (PSX) saw a remarkable surge on Monday, with the benchmark KSE-100 Index gaining 3,908 points, or 3.39 percent, to close at 115,259 points. This increase marks the third-highest single-day gain in the history of the index, trailing only behind the gains of 4,695 points on November 27, 2024, and 4,411 points last Monday. Notably, nine of the top ten highest single-day gains have occurred in 2024, with four of the top five recorded since November 27, 2024.
Brokerage firm Topline Securities attributed the rally to optimism regarding potential increases in equity fund allocations by local institutions in anticipation of the new year. Furthermore, the positive momentum was bolstered by comments from the finance minister, who indicated that interest rates might decline to single-digit levels in the future.
Although the ultimate decision on interest rates rests with the Monetary Policy Committee, the minister’s remarks fueled market optimism about the economic outlook. Significant contributors to the index’s rise included major companies such as HBL, DAWH, MCB, ENGRO, and MARI, which collectively added 1,265 points to the day’s performance.
On the trading front, a total of 1,023,501,044 shares were exchanged, compared to 815,920,043 shares the previous day. The total value of shares traded was Rs. 40.28 billion, up from Rs. 32.9 billion on the last trading day. A total of 465 companies participated in the market, with 333 recording gains, 84 experiencing losses, and 48 remaining unchanged.
In economic news, the National Accounts Committee (NAC) approved a growth rate of 0.92 percent for Q1 of FY2024-25, with agriculture, industry, and services growing by 1.15 percent, contracting by 1.03 percent, and increasing by 1.43 percent, respectively. However, there was a notable contraction of 5.93 percent in crops, driven by a sharp decline in cotton (-29.6 percent), maize (-15.6 percent), rice (-1.2 percent), and sugarcane (-2.2 percent) production. While the rate of contraction in industry slowed from 4.43 percent in Q1FY24 to 1.03 percent in Q1FY25, the data indicates challenges in the agricultural sector.
