Pakistan Stock Exchange (PSX) after the State Bank of Pakistan (SBP) opted to keep interest rates steady, bringing clarity to investors. The benchmark KSE-100 index rose by almost 1% during Tuesday’s trading session.
The market witnessed sustained optimism throughout the day, with both trading volume and value surpassing those of the previous session.
By the closing bell, the benchmark index settled at 65,502.60, marking a gain of 612.09 points or 0.94%. It peaked at 65,624.73 earlier in the day.
Across-the-board buying was observed, particularly in index-heavy sectors such as autos, Oil and Gas Exploration Companies, and OMCs, all ending the day in positive territory.
Market experts attributed this bullish trend to the anticipated decision by the central bank to maintain the status quo.
On Monday, the SBP’s Monetary Policy Committee (MPC) announced its decision to keep the key policy rate unchanged at 22%, the sixth consecutive decision maintaining the status quo.
In its statement on Monday, the MPC acknowledged the noticeable decline in inflation but highlighted its remaining high level and susceptibility to risks, necessitating a cautious approach and the continuation of the current monetary stance.
Globally, Tokyo stocks climbed following the Bank of Japan’s decision to raise interest rates for the first time in 17 years, shifting away from its ultra-loose monetary policy. Positive movements were also observed in Sydney, Singapore, Taipei, Manila, Jakarta, Bangkok, and Wellington.
Investors are now awaiting the Federal Reserve’s upcoming policy decision, with forecasts indicating a hold on rates but a release of the “dot plot” outlook for the rest of the year, potentially signaling future cuts.
Meanwhile, the rupee remained stable against the US dollar in the inter-bank market, settling at 278.64, a marginal decrease of Re0.01, according to the State Bank of Pakistan (SBP).
Trading volume on the all-share index increased to 323.28 million shares from 211.75 million in the previous session, with the value of shares rising to Rs17.06 billion from Rs7.78 billion.
WorldCall Telecom led in trading volume with 27.82 million shares, followed by Telecard Limited with 20.83 million shares, and Bank of Punjab with 17.91 million shares.
On Tuesday, shares of 341 companies were traded, with 184 witnessing an increase, 140 recording a fall, and 17 remaining unchanged.
