The index reached 88,045.64 points after rising 851.11 points, or 0.98%.
The rise was fueled by local investors buying shares aggressively in the face of declining bond yields and prospects of a significant monetary policy rate drop, according to Mohammed Sohail, CEO of Topline Securities.
“The locals are buying aggressively because they expect a rate cut and bond yields are falling,” Mohammed Sohail remarked. “The market is pricing in a policy rate cut of 200 basis points.”
The majority of analysts believe that at its next meeting on November 4, the State Bank of Pakistan (SBP) would lower its policy rate by 200 basis points. Since June, there have been four rate cuts in a row.
Wednesday saw the KSE-100 index soar by more than 700 points and settle above 87,000, surpassing a new all-time high.
Strong institutional purchases of cement and banking equities caused the session to continue moving in a positive direction.
The total number of shares traded dropped to 699.3 million from 722.2 million on Tuesday. Over the course of the day, shares worth Rs26.8 billion were exchanged.
A total of 447 firms’ shares were traded. Out of these, 60 stocks stayed the same, 173 declined, and 214 stocks closed higher. A total of Rs366.6 million worth of shares were sold by foreign investors during the day.
