Stocks surge at PSX as SBP maintains status quo – Markets

After days of profit-taking, buying returned to the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index closing with a gain of over 940 points on Monday.

Positive momentum persisted throughout the trading session, pushing the KSE-100 to an intra-day high of 155,602.29.

At close, the benchmark index settled at 155,384.50, an increase of 944.82 points or 0.61%.

Robust performances from FFC, UBL, and HUBC collectively contributed 448 points to the index’s advance. However, these gains were partially tempered by declines in HBL, BAHL, and ENGROH, which together dragged the index down by 91 points, brokerage house Topline Securities said in its post-market report.

In a key development, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP), in line with market expectations, decided to keep the policy rate unchanged at 11% on Monday.

Analysts expected that the MPC would continue to keep the policy rate unchanged in the next meeting, as inflation was projected to increase due to recent flooding.

During the previous week, PSX experienced a volatile week, oscillating between record highs and profit-taking, before closing nearly unchanged.

The KSE-100 Index touched an all-time intraday peak of 157,817 points, but sustained selling later dragged it down to close the week at 154,440 points, marking a modest gain of 163 points or 0.1% WoW.

Internationally, stocks got off to a quiet start in Asia on Monday ahead of an action-packed week that is seemingly certain to see the US Federal Reserve resume its easing cycle, and perhaps leave the door wide open to a series of cuts.

The Bank of Canada is also expected to cut rates by a quarter point this week, while China’s central bank might trim one of its market rates amid a sluggish economy.

The Bank of Japan and the Bank of England also meet and are both seen on hold.

Markets are 100% priced for an easing of 25 basis points from the Fed, taking its funds rate to 4.0-4.25%, with futures implying just a 4% chance of 50 basis points.

Just as important will be Fed members’ “dot plot” projections for rates and guidance from Fed Chair Jerome Powell on the extent and pace of any further easing.

Futures already have 125 basis points of cut priced in, so anything less than dovish will disappoint investors.

MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1%.

The Pakistani rupee maintained its positive momentum against the US dollar, appreciating 0.01% in the inter-bank market on Monday. The rupee settled at 281.52, a gain of Re0.03 against the greenback. This was the rupee’s 27th consecutive gain against the greenback.

Volume on the all-share index increased to 857.61 million from 987.59 million recorded in the previous close. The value of shares declined to Rs32.72 billion from Rs39.91 billion in the previous session.

Pace (Pak) Ltd. was the volume leader with 77.81 million shares, followed by B.O.PunjabXD with 58.23 million shares, and Pak Int.Bulk with 53.41 million shares.

Shares of 482 companies were traded on Monday, of which 243 registered an increase, 205 recorded a fall, while 34 remained unchanged.

After days of profit-taking, buying returned to the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index closing with a gain of over 940 points on Monday.

Positive momentum persisted throughout the trading session, pushing the KSE-100 to an intra-day high of 155,602.29.

At close, the benchmark index settled at 155,384.50, an increase of 944.82 points or 0.61%.

Robust performances from FFC, UBL, and HUBC collectively contributed 448 points to the index’s advance. However, these gains were partially tempered by declines in HBL, BAHL, and ENGROH, which together dragged the index down by 91 points, brokerage house Topline Securities said in its post-market report.

In a key development, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP), in line with market expectations, decided to keep the policy rate unchanged at 11% on Monday.

Analysts expected that the MPC would continue to keep the policy rate unchanged in the next meeting, as inflation was projected to increase due to recent flooding.

During the previous week, PSX experienced a volatile week, oscillating between record highs and profit-taking, before closing nearly unchanged.

The KSE-100 Index touched an all-time intraday peak of 157,817 points, but sustained selling later dragged it down to close the week at 154,440 points, marking a modest gain of 163 points or 0.1% WoW.

Internationally, stocks got off to a quiet start in Asia on Monday ahead of an action-packed week that is seemingly certain to see the US Federal Reserve resume its easing cycle, and perhaps leave the door wide open to a series of cuts.

The Bank of Canada is also expected to cut rates by a quarter point this week, while China’s central bank might trim one of its market rates amid a sluggish economy.

The Bank of Japan and the Bank of England also meet and are both seen on hold.

Markets are 100% priced for an easing of 25 basis points from the Fed, taking its funds rate to 4.0-4.25%, with futures implying just a 4% chance of 50 basis points.

Just as important will be Fed members’ “dot plot” projections for rates and guidance from Fed Chair Jerome Powell on the extent and pace of any further easing.

Futures already have 125 basis points of cut priced in, so anything less than dovish will disappoint investors.

MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1%.

The Pakistani rupee maintained its positive momentum against the US dollar, appreciating 0.01% in the inter-bank market on Monday. The rupee settled at 281.52, a gain of Re0.03 against the greenback. This was the rupee’s 27th consecutive gain against the greenback.

Volume on the all-share index increased to 857.61 million from 987.59 million recorded in the previous close. The value of shares declined to Rs32.72 billion from Rs39.91 billion in the previous session.

Pace (Pak) Ltd. was the volume leader with 77.81 million shares, followed by B.O.PunjabXD with 58.23 million shares, and Pak Int.Bulk with 53.41 million shares.

Shares of 482 companies were traded on Monday, of which 243 registered an increase, 205 recorded a fall, while 34 remained unchanged.