KSE-100 surges past 84,000

October 07, 2024 (MLN): Pakistan stock market extended its rally further as falling bond yields amid a larger-than-expected drop in inflation boosted sentiment.

The benchmark KSE-100 Index jumped 605.59 points or 0.72% to 84,137.54 as of 12:00pm after rising 2,240 points or 2.8% last week.

Inflation slowed to the lowest in almost four years, with consumer prices rising by 6.9% in September over the prior year. That is within the central bank's target range of 5-7%.

Traders have ramped up bets for more oversized rate cuts by the central bank in the upcoming meetings. The State Bank of Pakistan (SBP) has reduced its policy rate by 450bps since June 2024.

Top gainers during the day were PPL (+4.47%), SNGP (+4.43%), DGKC (+4.09%), INIL (+3.54%), and PSO (+3.36%).

In terms of index-point contributions, companies that propped up the index were FFC (+182.02pts), PPL (+115.71pts), OGDC (+104.36pts), POL (+44.53pts), and MARI (+44.41pts).

Sector-wise, KSE-100 Index was supported by Oil & Gas Exploration Companies (+309.01pts), Fertilizer (+210.09pts), Oil & Gas Marketing Companies (+71.57pts), Cement (+44.88pts), and Commercial Banks (+28.16pts).

Globally, the benchmark Brent Crude jumped the most since January 2023 last week.

In the broader market, the All-Share Index was at 53,493.21 with a net gain of 439.40 points or 0.83%.

To note, the KSE-100 has gained 5,693 points or 7.26% during the fiscal year, whereas the ongoing calendar year has witnessed a cumulative increase of 21,686 points, equivalent to 34.73%.

The bullish momentum is largely driven by the International Monetary Fund (IMF) board’s approval of a $7 billion loan, a slump in bond yields amid a larger-than-expected drop in September inflation, and an improvement in central bank's reserves.

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