KARACHI: The KSE-100 Index has reached a historic high, closing above 116,000 points, as investor optimism grows in anticipation of further interest rate cuts by the State Bank of Pakistan (SBP).

This marks a significant milestone for the Pakistani stock market, reflecting a positive outlook among investors despite the challenges faced by the economy. The surge in the KSE-100 can be attributed to several factors, most notably the expectation that the SBP will continue its monetary easing stance. Market experts predict that the central bank, which has already reduced the policy rate multiple times this year, will further lower the key interest rate to stimulate economic growth and control inflation. The anticipation of a more favorable economic environment has encouraged investors to flock to the stock market, driving up stock prices. In addition to expectations of further rate cuts, other positive indicators have also bolstered investor confidence. Pakistan's current account surplus for the past few months, along with stable global commodity prices, has provided a sense of stability. Furthermore, credit growth and improved liquidity conditions have further fueled optimism, particularly in the banking and industrial sectors. The upward movement of the KSE-100 Index signals a recovery in investor sentiment, suggesting that the market is pricing in a more favorable macroeconomic environment in the near future. However, market experts caution that external risks, such as global economic fluctuations, could impact the market's momentum in the long term.