KARACHI: Pakistani stocks crossed another milestone on Tuesday, with the benchmark Karachi Stock Exchange (KSE) 100-index crossing the 32,000-point mark for the first time in its history.

At the end of trading, the benchmark KSE 100-index rose 0.96 per cent or 303.61 points to close at a record high of 32,006.40 points.

The market hit a high of 32,021.99 points during trading, but came back to settle at 32,006 points, with a total of 312,061,880 shares traded.

The rally came as the central bank cut its main policy rate by 50 basis points, with investors expecting interest rates to fall further.

Also read: SBP reduces interest rate by 50bps

The cement sector rallied on expectations of a rise in cement prices, with a total traded volume of 69,576,200 shares and stocks hitting their upper caps.

Cement stocks also rallied amid rumours of an increase in cement prices, said Samar Iqbal, a dealer at Topline Securities.

Commercial banking stock also rallied with a total traded volume of 43,098,500 shares, followed by the fertiliser and textile sectors also witnessing an upward trend.

Analysts say foreign fund managers showed exceptional interest in the market and it is expected that the bullish trend may continue at the bourse in the coming days.

Pakistan Engro Corp Ltd rose 5 per cent to 212.02 rupees, while DG Khan Cement Co Ltd ended up 5 per cent at 92.24 rupees.

The rupee closed stronger at 101.60/101.67 against the dollar, compared with Monday's close of 101.80/101.90.

Overnight rates in the money market rose to 9.50 per cent from Monday's of 9.00 per cent