Bulls maintained dominance at the Pakistan Stock Exchange (PSX) on Thursday, with the KSE-100 index surging by 689.23 points in intraday trading. The index reached 87,883.76 points by 9:54 AM, marking a 0.71 per cent gain from its previous close of 87,194.53 points.
The rally was primarily driven by aggressive local buying in response to falling bond yields and growing anticipation of a major cut in the State Bank of Pakistan’s (SBP) monetary policy rate. Mohammed Sohail, CEO of Topline Securities, noted that expectations of a significant rate cut fuelled investor confidence, as inflation has eased, and the current account deficit remains low.
Market analysts widely expect the SBP to reduce its policy rate by 200 basis points at its upcoming meeting on November 4. This would mark the fourth consecutive rate cut since June, as the central bank seeks to stimulate economic growth amid favorable macroeconomic conditions.
Yousuf M. Farooq, Director of Research at Chase Securities, observed a clear shift toward bullish market sentiment. “We are in a bull market, and market participation is increasing,” he said, noting that combined volumes for ready and futures markets have surpassed Rs40 billion over the past two days. Farooq emphasised that fund flows are moving towards equities, a trend expected to persist.
Awais Ashraf, Director of Research at AKD Securities, echoed similar sentiments, highlighting that easing political risks and the approval of a $3 billion loan from the Islamic Trade Finance Corporation have further bolstered investor confidence. Ashraf added, “Stocks that benefit from monetary easing and structural reforms are likely to outperform in the coming months.”
As investors await the SBP’s policy decision, the PSX continues to experience robust trading activity, with equities positioned to capitalise on favourable economic conditions.
