Bulls recover from a sharp fall.

The benchmark KSE-100 Index hovered at 111,005 points after rising more than 2000 points against the previous closing of 108,896 points, indicating that bullish momentum has returned to the Pakistan Stock Exchange (PSX) a day after a sharp bearish rally.

For the past month or so, the proverbial bulls have been galloping thanks to the cash infusion from the International Monetary Fund’s loan release and more discussions on climate funding.

The impending SBP policy rate-cutting meeting is another factor contributing to the current market mood. On December 16, the Central Bank’s Monetary Policy Committee is anticipated to convene.

Market analysts claim that the government’s decision to form a committee to address the outstanding problem of the Advances to Deposit Ratio (ADR) in the banking industry was the cause of the market’s abrupt collapse. However, the trend didn’t last long.

Following an extraordinary run of gains over the past month or so, the Pakistan Stock Exchange (PSX) reached a historic high of 100,000 points on November 30.

The KSE-100 index achieved one milestone after another in November 2024 amid recurring reports of economic stability, mainly due to the recent loan disbursement by the IMF.

The reassuring agreement with the international lender and Pakistan’s economic czar Muhammad Aurangzeb’s subsequent announcement ruling out a mini-budget boosted investor confidence in recent times.

The State Bank of Pakistan lowered the policy rate by 250 basis points to 15% on November 5.

Inflation dropped more quickly than anticipated and approached its medium-term target range in October, according to the SBP’s relevant committee.