KARACHI – Pakistan Stock Exchange (PSX) continued its upward momentum, with the benchmark KSE-100 Index crossing the 105,000 level during early trading. Before noon, the index tgained 856.84 points, reaching 105,415.91, a 0.82% increase, as investors remained optimistic about a potential further reduction in the country’s key policy rate. The record rally is attributed to growing investor expectations that the State Bank of Pakistan (SBP) will announce a substantial rate cut in its upcoming monetary policy meeting on December 16, 2024. A report from Topline Securities, published on Tuesday, suggests the central bank could reduce the key policy rate by at least 200 basis points, following improvements in economic indicators and a slowdown in inflation. A leading brokerage house said the high real interest rates, which stood at 1,010 basis points in November 2024—well above the historical average of 200-300 basis points—are further fueling expectations of a rate cut. The positive momentum follows a strong performance on Tuesday, when the KSE-100 Index surged by nearly 1,300 points, closing above 104,000, marking a new all-time high. In global markets, Asian equities faced pressure, with the KOSPI index in South Korea falling nearly 2% amid political unrest in the country. The South Korean won initially strengthened due to suspected government intervention but remained near its two-year low against the dollar. The MSCI Asia-Pacific index, which includes Samsung Electronics, dropped 0.32% on Wednesday. More from this category Copyright ©2024. Reproduction of this website's content without express written permission from 'Daily Pakistan' is strictly prohibited.