The Pakistan Stock Exchange (PSX) maintained its upward trajectory amid talks of further rate cut in policy rate next week, as the benchmark KSE-100 Index gained over 400 points during trading on Wednesday.
At post-close, the benchmark index was at 79,397.00 level, an increase of 409.91 points or 0.52%.
Buying was majorly lead by the banking sector, alongside fertilizer, pharmaceutical, oil and gas exploration companies and OMCs.
Index-heavy stocks including OGDC, PPL, PSO, SHEL, HBL, MCB and NBP traded in green.
Experts attributed the positivity to expectations of another cut in the policy rate by the State Bank of Pakistan (SBP) in its upcoming Monetary Policy Committee (MPC) meeting.
A survey conducted by JS Global, a brokerage house, revealed robust expectations for a substantial policy rate reduction. “While the market leans towards a 100bps cut, a notable portion of respondents anticipate a more aggressive 150bps move,” it added.
After much delay, the central bank issued the advance calendar of MPC meetings for the period between July and December 2024.
The SBP is due to hold the first MPC meeting on July 29 (Monday).
On Tuesday, positivity returned to the PSX as the benchmark KSE-100 Index closed higher by nearly 450 points to settle at 78,987.09.
Globally, the Asian stocks were subdued on Wednesday after lacklustre earnings from U.S. tech behemoths Tesla and Alphabet dented sentiment, while the yen hit a six-week high ahead of a central bank meeting next week where a rate hike remains on the table.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.08% lower at 566.26, not far from the one-month low of 562.43 it touched on Monday.
Japan’s Nikkei fell 0.23% while Taiwan financial markets are closed due to a typhoon.
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