PSX Hits Record High Amid Anticipated Policy Rate Reduction
Analysts forecast a 200-basis-point cut, with expectations of a drop in policy rate to 15.5%
The Pakistan Stock Exchange (PSX) continued its bullish trend on Wednesday, fueled by rising investor confidence in anticipated interest rate cuts.
The KSE-100 index rose by 736.10 points, or 0.81%, reaching an intra-day peak of 91,600.19, up from the previous close of 90,864.09. Although the session opened with a decline, with the index hitting an early low of 90,449.41, it soon gained momentum and moved upward.
Foreign interest in banking and fertilizer stocks, along with institutional buying and favorable lending conditions, helped propel the market. This optimism pushed the index past the 91,000 mark, hitting an intra-day high of 91,358.15 points before closing slightly below.
Ahsan Mehanti, Managing Director of Arif Habib Corp, commented, “Stocks reached a record high as investors responded to strong financial results and anticipated a possible rate cut from the State Bank of Pakistan.”
Samiullah Tariq, Head of Research at Pakistan-Kuwait, added that the market’s positive outlook is supported by declining yields, limited alternative investments due to taxes, and solid corporate earnings.
The State Bank of Pakistan’s Monetary Policy Committee will meet on November 4, with analysts expecting a 200-basis-point cut, bringing the policy rate down to 15.5%.
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