The Pakistan Stock Exchange (PSX) witnessed spectacular growth on Monday as the KSE-100 index surged 1,056 points, breaching the new all-time high of 91,916 points. By midday, the index was already 1.15% in the green from its opening after jumping 92,016 points. More than 116 million shares traded today valued at nearly Rs9.95 billion.
The upsurge comes ahead of the monetary policy decision by the State Bank of Pakistan, in which market expectation is pegged at a 200 basis points rate cut owing to the softening inflationary pressure and remittance flows. Analysts also see the reduction in the rates as further fuel to boost economic activity, while building investor confidence. A major fuel to the rally has also been provided by inflation in October, which posted a modest rise to 7.2% year-on-year compared with the previous high a year ago.
PSX’s gains mirror improved foreign reserves, now at $11.2 billion, as the SBP’s $116 million increase in reserves last week supported this measure.Market optimism surrounding the possible rate cuts and disbursement of the IMF funds has been supportive of sentiment.This upward trend was seen after consecutive gains registered in September and October with the positive economic outlook in conjunction with enhanced fiscal stability seen across Pakistan.
To Read More: Business