The Pakistan Stock Exchange (PSX) saw bullish activity on Thursday, driven by expectations of an additional reduction in the key policy rate by the State Bank of Pakistan (SBP). The KSE-100 Index gained nearly 400 points, reaching approximately 79,017.61 by 3:30 p.m., marking an increase of 365.82 points or 0.47%.
Strong performance was observed in major sectors such as automobiles, cement, commercial banks, fertilizers, oil and gas exploration, and oil marketing companies. Notable gainers included OGDC, PPL, SNGPL, UBL, MEBL, and BoP.
Investors are optimistic about a potential rate cut as the central bank’s Monetary Policy Committee (MPC) is expected to announce changes to the policy rate soon. This optimism followed a significant decline in the KSE-100 Index on Wednesday, which fell by 634.94 points or 0.80% to close at 78,651.80 points, driven by cautious trading ahead of the anticipated policy announcement.
Globally, Asian markets rebounded on Thursday, following a tech-driven rally on Wall Street, while the dollar maintained its gains after a surprising uptick in US core inflation. Investors are also awaiting a likely rate cut decision from the European Central Bank, with speculation about further moves in October and December.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 1%, and the Nikkei surged 3%, bolstered by a weaker yen that retreated from its 2024 high of 140.71 per dollar.
