PSX ends strong: KSE-100 gains 539 points amid policy rate decision

KARACHI: In a bustling trading session on Monday, the Pakistan Stock Exchange (PSX) experienced a surge in buying activity, propelling its benchmark KSE-100 Index by over 1 per cent.

This uptick occurred just before the much-anticipated monetary policy announcement.

Following the close of the trading session, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) declared its decision to maintain the key policy rate at 22 per cent, sustaining the status quo in the financial landscape.

This optimistic market sentiment was largely influenced by the anticipation of an interest rate cut, as highlighted in a report from Ismail Iqbal Securities.

Throughout the day, the KSE-100 Index predominantly remained in positive territory. At the closing bell, it stood at 51,482.93, marking a notable increase of 539.09 points or 1.06 per cent.

Key sectors such as power, fertiliser, cement, and banking played a significant role in this positive trajectory.

Read more: Gas price hike decision put on hold

HUBC, DAWH, LUCK, UBL, and MEBL collectively contributed 267 points, as reported by the brokerage house Topline Securities in its post-market analysis.

Conversely, profit-taking in HBL, BOP, and SYS shares led to a combined loss of 68 points.

Trading activity witnessed a decline, with the all-share index volume decreasing to 286.6 million from the previous session’s 350.8 million.

Despite this, the value of shares saw an uptick, rising to Rs11.4 billion from Rs10.6 billion in the preceding session.

On the other hand, the Pakistani rupee continued its decline against the US dollar, marking its sixth consecutive session of losses.

In the inter-bank market on Monday, the local currency depreciated by 0.14 per cent, settling at Rs280.95 according to the State Bank of Pakistan, reflecting a decline of Re0.38.