KSE hits record high on SBP rate-cut hopes

KARACHI: Stocks rose to a record high near 16,400 points on Tuesday, driven by a spike in cement stocks and expectations that the central bank will cut rates at next month's meeting.

The Karachi Stock Exchange's (KSE) benchmark 100-share index surged to a record high of 16,375.36 in intraday trading. It closed at 16,364.77, up 0.58 percent or 94.29 points from the previous session.

"Renewed buying was see in cement stocks amid expectations that their December results would be better than the last quarter," said a dealer.

The market also found support from expectations that the State Bank of Pakistan will cut its discount rate at next month's monetary policy meeting.

D.G. Khan Cement rose 3.65 percent, or 1.95 rupees, to 55.39 per share, while Karachi Electric rose 12.01 percent, or 0.70 rupees, to 6.53 per share. (Reuters)