Pakistan Stock Market Up 0.47% Amid Policy Rate Cut

Staff Report:

Pakistan equities opened on a bullish note ahead of the key Monetary Policy Meeting, scheduled for announcement later in the evening. The KSE-100 index sustained positive momentum throughout the session, closing at 79,017 points, marking a gain of 365.82 points (up 0.47%).

Broad-based buying was observed in blue-chip stocks, driven by widespread market expectations of a 100-150 basis points reduction in interest rates, backed by declining inflation and improved macroeconomic indicators.Pakistan Stock Market Drops 283 Points Amid Volatile Trading

Key heavyweights such as UBL, FFC, FCCL, OGDC, and HUBC posted significant gains, collectively contributing to a notable 236-point rise.

Investor sentiment remained particularly strong in the cement sector, with heightened expectations surrounding the upcoming monetary policy decision later today, where a rate cut was widely anticipated. Cement stocks like FCCL (up 4.77%), MLCF (up 4.45%), DGKC (up 2.20%), and CHCC (up 2.14%) all closed higher compared to the previous day.

Trading volume exceeded 583 million shares, with a total turnover of Rs16.3 billion. KOSM led the volumes chart, trading over 60.7 million shares.

P.S. The State Bank of Pakistan has announced a 2% interest rate cut, lowering the rate to 17.50% from 19.50%.