Following the fifth consecutive rate drop in 2024, the KSE-100 index surpasses the 117k barrier.

One day after the State Bank of Pakistan (SBP) Monetary Policy Committee (MPC) lowered the policy rate by 200 basis points to 13% at its most recent meeting on Monday, December 16, the markets received a fresh boost.

The most recent rate decrease proved to be another boost to the stock market, as the benchmark KSE-100 index rose more than 800 points during the first few hours of trading, hovering at 117,039 points. The Pakistan Stock Exchange (PSX), which was already reaching new heights every day, was already seeing a surge in value.

In important industries including automakers, cement, fertilizers, oil and gas exploration firms, OMCs, and refineries, buying was the vogue, while commercial banks and the electricity generation industry saw selling pressure.

Note that from June 2024, when the policy rate was 22%, this was the fifth consecutive rate drop.