Karachi: Shares at the Pakistan Stock Exchange (PSX) surged by over 700 points on Monday, driven by anticipation of the State Bank of Pakistan’s (SBP) monetary policy decision. The benchmark KSE-100 index rose by 732.19 points, or 0.94%, reaching 78,761.69 points by 10:46 am from the previous close of 78,029.50. The index closed the day at 78,827.74, marking an increase of 798.24 points, or 1.02%.
Raza Jafri, CEO of EFG Hermes Pakistan, attributed the positive movement to the upcoming monetary policy announcement, coupled with supportive news from China and a stable political environment. The onset of the result season also contributed to the market’s optimism.
Mohammed Sohail, CEO of Topline Securities, noted that investors focus on SBP’s monetary policy rate meeting and July’s inflation figures. He mentioned that expectations of a rate cut have encouraged gradual buying in the market.
Yousuf M. Farooq, Director of Research at Chase Securities, highlighted that the market rally was fueled by the end of a rollover week, anticipated rate cuts, and a stable political climate. He indicated expectations of a 100-150 basis point rate cut with further reductions expected over the next year.
Awais Ashraf, Director of Research at AKD Securities, echoed these sentiments, adding that reports of China’s support for Pakistan’s IMF program and plans to convert IPPs to local coal contributed to the market’s rise. The potential for aggressive monetary easing by the SBP also bolstered investor confidence in equities.
