On Thursday, the Pakistan Stock Exchange (PSX) soared to an intraday high, crossing the 88,400-point mark, driven by robust expectations that the central bank will maintain a hawkish approach amidst favorable macroeconomic indicators and signs of disinflation. By 2:04 PM, the KSE-100 index had climbed 1,905.89 points, or 1.74%, reaching 89,100 points, up from the previous close of 87,194.53 points.
Investors are increasingly focusing on high-performing sectors, including automobiles, cement, and banking, especially following the approval of a $7 billion loan from the International Monetary Fund (IMF). Additionally, recent political developments, such as the passage of the 26th Amendment, have further propelled market momentum. The anticipation of a 200 basis points cut in interest rates has also contributed to the ongoing rally. According to brokerage Arif Habib Limited, the KSE-100 index is now at an all-time high, marking a remarkable 41% gain year-to-date and an 8.5% increase month-on-month.
Looking ahead, the upcoming Monetary Policy Committee (MPC) meeting on November 4 is expected to announce a rate reduction, with analysts predicting a total cut of up to 400 basis points by December. This speculation is fueled by the continued decline in inflation, which was recorded at 6.9% year-on-year in September. Overall, the PSX’s performance reflects a growing confidence in the market and highlights the potential for further positive developments in Pakistan’s economic landscape.
