The Pakistan Stock Exchange (PSX) saw a positive turn on Wednesday, with the benchmark KSE-100 Index rising by 447.44 points, or 0.32%, following investor optimism ahead of the State Bank of Pakistan’s (SBP) monetary policy announcement. Strong corporate earnings, global equity rallies, and a stable rupee contributed to the bullish trend, despite earlier uncertainties in the market.
The PSX ended the day with notable gains as investors positioned themselves in anticipation of the SBP’s monetary policy statement, which was expected to signal easing measures. The KSE-100 Index closed at 138,412.25 points, up from the previous session’s 137,964.81 points. Throughout the day, the index reached an intraday high of 139,018.88, before dipping to a low of 137,636.37 points.
Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities, attributed the market’s recovery to expectations that the SBP would ease interest rates due to subdued inflation. “Strong financial results, surging global equities, and rupee stability were key catalysts in driving the positive sentiment at PSX,” he said.
The market’s bullish trend was also bolstered by positive corporate developments. Systems Limited (SYS), Pakistan’s largest software firm, received approval to acquire British American Tobacco SAA Services (Pvt) Ltd. This acquisition, aimed at enhancing IT-enabled services across marketing, human resources, finance, and procurement, was seen as a major step in strengthening Pakistan’s tech sector.
Investor sentiment was further buoyed by global economic indicators. The International Monetary Fund (IMF) raised its economic growth forecast for emerging and developing economies, including Pakistan, to 4.1% for 2025. This optimistic outlook, driven by policy frontloading and improved expectations for China’s economy, provided additional support to the market.
Earlier in the week, the KSE-100 Index had dropped by 1.02%, or 1,415.24 points, driven by profit-taking and uncertainty surrounding the SBP’s policy direction. However, the market managed to regain some ground on Wednesday as investor confidence picked up following the resolution of pre-policy anxiety.
Despite the market’s recovery, analysts had initially expected a further rate cut due to cooling inflation, which would have helped stimulate economic growth. However, the SBP opted to maintain the key interest rate at 11%, surprising many who had anticipated a more aggressive approach to rate cuts.
