The Pakistan Stock Exchange (PSX) experienced a significant surge on Monday as the benchmark KSE-100 index climbed by 732.19 points, or 0.94 per cent, reaching 78,761.69 points at 10:46 AM. This increase from the previous close of 78,029.50 points comes as investors eagerly await the State Bank of Pakistan’s (SBP) monetary policy decision, expected later today.
Raza Jafri, CEO of EFG Hermes Pakistan, attributed the positive market reaction to several factors, including the upcoming monetary policy announcement. “The index is reacting positively to several factors such as the monetary policy later today,” Jafri stated. He also noted that news reports of a supportive stance by China, a stable political environment over the weekend, and the onset of the result season contributed to the market’s upward momentum.
Yousuf M. Farooq, Director of Research at Chase Securities, emphasised the market’s rally due to the conclusion of a rollover week and the anticipation of a rate cut. “The market rallied on the end of a rollover week, expectations of a rate cut, and relative calm on the political front,” Farooq explained. He added that the market expects a rate cut of 100-150 basis points, with more reductions anticipated over the next year.