After days of profit-taking, buying returned to the Pakistan Stock Exchange (PSX) on Monday, with the benchmark KSE-100 Index closing at 155,384.50, up 944.82 points or 0.61%.
The index hit an intra-day high of 155,602.29, supported by positive investor sentiment following the Monetary Policy Committee’s (MPC) decision to keep the policy rate steady at 11%, in line with market expectations. Analysts expect the rate to remain unchanged in the next meeting as recent floods may drive inflation higher.
Last week, the PSX saw volatility, with the KSE-100 touching an all-time intra-day peak of 157,817 points before profit-taking pushed it down to 154,440 points, a modest 0.1% week-on-week gain.
On the international front, Asian stocks began the week quietly ahead of several central bank decisions, including the US Federal Reserve, Bank of Canada, Bank of Japan, Bank of England, and China’s central bank, which are closely watched for rate changes and policy guidance.
The Pakistani rupee continued its positive streak, appreciating 0.01% in the inter-bank market to settle at 281.52 against the US dollar, marking its 27th consecutive gain.
Policy rate not changed against expectation of reduction in rate. Still index rising.