PSX ends higher amid hopes of rate cut ahead of MPC meeting

KARACHI: The Pakistan Stock Exchange (PSX) closed slightly higher on Monday as expectations of an interest rate cut ahead of the State Bank’s upcoming Monetary Policy Committee (MPC) meeting fuelled investor optimism.

The benchmark KSE-100 index gained 173 points, or 0.12 per cent, to settle at 139,380. The benchmark Index opened today’s trading session on a bullish note, buoyed by investor optimism stemming from expectations of a policy rate cut in the upcoming MPC meeting, alongside positive sentiment around corporate profitability amid the ongoing quarterly earnings season, analysts said.

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However, profit-taking emerged in the latter half of the session, paring earlier gains. Nonetheless, the index managed to close in the positive territory, Pearl Securities said.

“Stocks closed higher amid speculation ahead of the SBP policy announcement on July 30,” said Ahsan Mehanti, CEO at Arif Habib Commodities. “Surging Pakistan sovereign bonds after S&P global lifts credit rating to B- with stable outlook, strong earnings outlook and surging global crude oil prices played catalyst role in positive close at PSX.”

Cement, Pharmaceuticals, and Technology & Communication sectors were the major contributors in today’s session, cumulatively adding 467 points to the index.

Trading activity also improved, with volumes rising to 214 million shares from 191 million in the previous session.

In the last session, Index had also closed on a positive note after a volatile session, as investors navigated rollover activity and selectively built positions, lending support of the market’s recovery by the end of the day.

Analysts said market direction will continue to be guided by macroeconomic cues and monetary policy expectations in the coming days.