The Pakistan Stock Exchange (PSX) witnessed a bullish trend on Monday, as its benchmark KSE-100 Index gained nearly 800 points in anticipation of the monetary policy announcement.
The bulls maintained their grip in the market since start of the session with expectation of a cut in the policy rate.
At close, the benchmark index settled at 78,827.74, up by 798.23 points or 1.02%.
In line with the expectations, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) reduced the key policy rate by 100 basis points, taking it to 19.5%.
“We have noted that the inflation is on a declining trend,” SBP Governor Jameel Ahmad said as he addressed a press conference.
In its post-market report, brokerage house Ismail Iqbal Securities said the equity market ended on a positive note on Monday, buoyed by anticipation of the policy rate and supported by Fitch Rating’s upgrade of Pakistan’s Long-Term Foreign Currency Issuer Default Rating to ‘CCC+’ from ‘CCC’.
“The upgrade reflects greater certainty over continued availability of external funding, in the context of Pakistan’s staff-level agreement (SLA) with the IMF on a new 37-month $7 billion Extended Fund Facility (EFF),” Fitch said in a statement on Monday.
Meanwhile, Waves Home Appliances Limited (WAVESAPP), a Pakistani manufacturer of home appliances, has received a proposal for strategic alliance/JV (joint venture) from a global appliances player.
The listed company, formerly Samin Textiles Limited, shared the development in a notice to the PSX on Monday. However, WAVESAPP did not disclose the name of the foreign company.
“Following the improvements in the economic conditions of the country, the company has received an intention for strategic alliance/JV from a foreign global player(s),” read the notice.
Pakistan Oilfields Limited (POL), an oil and gas exploration company, announced the discovery of hydrocarbon reserves at its Razgir-1 exploratory well located in Kohat district, Khyber Pakhtunkhwa.
The listed company, which is a subsidiary of Attock Oil Company Limited, UK and its ultimate parent is Coral Holding Limited, shared the development in its notice to the bourse.
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