Policy Uncertainty Keeps Markets Watchful Despite PSX Gains

The Pakistan Stock Exchange (PSX) opened the week on a positive note as the KSE-100 Index climbed over 950 points in early trade. The index stood at 155,389.90 by 10:05 am, up 0.62% from the previous close.

Buying was concentrated in banks, energy, and fertiliser, with major players like HBL, UBL, MARI, and HUBCO leading the gains. The rebound followed a volatile week in which the index swung between record highs and profit-taking, eventually closing nearly flat.

The upward momentum coincides with anticipation of the State Bank of Pakistan’s Monetary Policy Committee meeting scheduled for later today.

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Market observers widely expect the central bank to keep the policy rate steady at 11%. The last decision in June had held rates unchanged, citing inflation risks linked to energy price hikes.

Analysts argue that with flooding pushing inflation higher, a rate cut is unlikely. Instead, the central bank may continue its cautious approach, balancing inflationary risks with the need to support growth.