KARACHI: Pakistan’s KSE-100 index continued its momentum marking an impressive gain of 1300 points on Wednesday as investors expressed confidence after the State Bank of Pakistan (SBP) reduced the policy rate.
The PSX benchmark KSE-100 Index continued yesterday’s rally and 1300 points during the opening hours of trading on Wednesday. With a 1300-point gain, the PSX benchmark KSE-100 Index hovering at 116,165 points against the previous close of 114, 860 points when it witnessed a steep decline of 1308 points.
Buying was all the rage in key sectors including automobile assemblers, cement, fertilizer, oil and gas exploration companies, OMCs and refinery, while selling pressure was witnessed in commercial banks and the power generation sector.
It must be noted that this was the fifth successive policy rate cut since June 2024 when the rate was 22pc.
On Tuesday, the investor sentiment remained mixed as early gains, driven by the State Bank of Pakistan’s (SBP) policy rate cut announcement a day before and a positive economic indication turned into selling pressure during the early part of the session, investor sentiment remained mixed.
The PSX’s benchmark index therefore reached an intraday high of 117,039.17, showing optimism in the morning session. This, however, saw a profit-taking phase which dragged the market to a low of 113,688.54. At close, the KSE-100 Index lost 1,308.73 points or 1.13% to finish at 114,860.68.
Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, said, “Some profit-taking is being seen today as the market has increased significantly,” indicating that this is the mood among investors after the last surge.
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The policy rate cut by the SBP by 200-bps to 13% has rekindled the interests of stock investors.
The state bank’s recent move has taken its rate cut tally to five in a row, indicating the accommodative monetary stance meant to stimulate civic economic growth.
