Stocks surge past 69,000 level due to rate cut hopes

Stocks at the Pakistan Stock Exchange (PSX) marched ahead with bullish momentum on Monday as the benchmark KSE-100 Index surged past the 69,000 level for the first time in history, backed by declining inflation numbers and upspringing hopes of a rate cut. 

As per the PSX website, the stocks opened the week with an upward trend and crossed the 69,000 barrier by gaining over 600 points at around 10:50 am. 

The benchmark index touched its highest level of 69,656.30 mark as of 1:25 pm, after clinching 1,239.52 points or 1.81%. The index closed the session at 69,619.98 level, up by 1203.20 or 1.76% from the previous close of 68,416.78 points.

The All-Share index was at 45,310.08 with a net gain of 273.62 points.

Foreign investors and institutions injected additional liquidity through buying, which backed the market’s upward momentum.

The buying spree was led by the pharma, power generation and distribution, oil marketing companies (OMCs), and exploration companies, with companies including SNGPL, PSO, OGDC, and PPL traded in the green zone. 

Market analysts attributed the rally to a declining trend in inflation, which recorded 20.68% YoY for March 20, raising hopes for a policy rate cut by the State Bank of Pakistan. 

Prime Minister Shehbaz Sharif’s visit to Saudi Arabia is also seen as an ignitor for the market sentiment as there are hopes of signing some bilateral investment agreements.