The Pakistan Stock Exchange (PSX) experienced a bullish trend on Monday, with the KSE-100 Index climbing nearly 800 points in anticipation of the upcoming monetary policy announcement. The market maintained a positive momentum throughout the session, driven by expectations of a policy rate cut.
At the close, the benchmark index settled at 78,827.74, up by 798.23 points or 1.02%. The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) announced a reduction in the key policy rate by 100 basis points to 19.5%, citing a decline in inflation.
In its post-market report, Ismail Iqbal Securities highlighted the positive market sentiment, supported by Fitch Rating’s upgrade of Pakistan’s Long-Term Foreign Currency Issuer Default Rating to ‘CCC+’ from ‘CCC’. Fitch’s upgrade reflects increased certainty over continued external funding, following Pakistan’s staff-level agreement (SLA) with the IMF on a new 37-month $7 billion Extended Fund Facility (EFF).
Waves Home Appliances Limited (WAVESAPP) announced receiving a proposal for a strategic alliance or joint venture from a global appliances company, though the name of the foreign company was not disclosed.
Pakistan Oilfields Limited (POL) reported the discovery of hydrocarbon reserves at its Razgir-1 exploratory well in the Kohat district, Khyber Pakhtunkhwa. The company, a subsidiary of Attock Oil Company Limited, UK, shared that the well was drilled to a depth of 3,950 meters.
Contributing sectors to the positive trend included banks, exploration and production (E&P), fertilizer, cement, pharmaceuticals, auto, and technology.
Globally, Asian shares rose on Monday amid a week full of earnings reports and central bank meetings, with potential easing measures from the US and UK, while Japan might raise borrowing costs.
The Pakistani rupee saw a slight decline, depreciating 0.06% against the US dollar to close at 278.5 in the inter-bank market.
Volume on the all-share index increased to 371.09 million from 278.33 million in the previous session, while the value of shares rose to Rs19.16 billion from Rs11.62 billion. Waves Home Appliances was the volume leader with 27.93 million shares, followed by Al-Shaheer Corporation with 15.55 million shares and Dewan Motors with 14.27 million shares.
Shares of 437 companies were traded on Monday, with 252 registering gains, 129 declining, and 56 remaining unchanged.
