On Friday, the KSE-100 Index displayed a relatively subdued reaction to the announcement of the International Monetary Fund (IMF) board meeting scheduled for September 25 and the State Bank of Pakistan’s (SBP) 200 basis point rate cut. By mid-session, the index had gained 0.73%, reaching approximately 79,597.89 points.
The session began with a surge due to optimism surrounding the IMF’s agenda to review Pakistan’s $7-billion bailout and the SBP’s most significant monetary easing in over four years. However, this initial excitement was tempered by profit-taking as investors assessed the news.
Despite a positive start, the index’s upward momentum was capped, and it saw a moderate increase of 580.28 points or 0.73% by noon. Sectors benefiting directly from the rate cut, including automobiles, cement, banking, oil and gas, and power generation, saw increased activity.
Analysts anticipate a gradual recovery for the PSX, though concerns remain about the government’s ability to meet tax targets and implement reforms amidst political uncertainties. Nonetheless, some believe the index may overcome these challenges and experience further gains in the coming months.
In global markets, Indian shares were expected to open flat following a significant rally, with the NSE Nifty 50 poised to open near its record closing high of 25,388.9 points. The previous session saw notable gains in both the Nifty 50 and S&P BSE Sensex, driven by foreign inflows and expectations of potential interest rate cuts in China.
