Stocks rebound, soar to record above 110k

Following a brief pause, the Pakistan Stock Exchange (PSX) on Wednesday saw a resurgence in investor interest as the KSE-100 index rebounded sharply and rose over 1,900 points to a new record high. Market optimism was fuelled by expectations of a policy rate reduction in the monetary policy committee meeting on December 16, after a significant drop in inflation to 4.9%, its lowest in over six years. Trading activity quickly picked up momentum following the market's opening and reached the intra-day peak at 111,012.02. The buoyancy was fuelled by positive economic developments, notably the discussion on the advances-to-deposit ratio (ADR) for banks. Investors also weighed upbeat car sales, which surged 62% year-on-year (YoY) in November. AKD Securities' Investment Analyst Osama Naeem attributed the growth to the resurgence in passenger car sales.