The share prices made a sharp U-turn at Pakistan Stock Exchange after plunging by about 1,300 points during business on Monday, reported 24NewsHD TV channel.
As the trading began, the stocks witnessed an all-out sell-off sinking the benchmark KSE-100 index by about 1,300 points in no time.
The buying, however, staged a comeback, erasing all the losses first and then drove the index to a new all-time high.
The index surged by nearly 1,100 by noon with index climbing to over 110,000.
At the end of the day, the index closed at 109,970.38 up by 916.43 or 0.83 percent.
Analysts said that the rally followed news that Pakistan’s annual inflation rate dropped to 4.9pc in November, its lowest level since 2017. The country’s trade deficit also narrowed by 19pc year-over-year to $1.59 billion.
The market is rerating upwards in anticipation of lower interest rates and stronger earnings growth.
Investors have grown more optimistic about the State Bank of Pakistan continuing with monetary easing in the upcoming Monetary Policy Committee meeting to be held on November 18, 2024.
The upward trend in the stock exchange shows increasing confidence of business community on economic policies of government.
Earlier, on Friday surging foreign exchange reserves and rollover of the Saudi deposit kept fuelling the bull-run at the Pakistan Stock Exchange, helping the benchmark KSE-100 index cross yet another barrier of 109,000.
Reporter: Ayaz Rana