The Pakistan Stock Exchange (PSX) bounced back strongly on Monday, gaining 945 points, as investors welcomed the State Bank of Pakistan’s decision to keep the policy rate unchanged at 11%. The move came after two days of profit-taking and growing anticipation over the monetary policy announcement.
The KSE-100 index surged to close at 155,384.51, up 0.61%, as traders turned bullish on banking, cement, fertiliser, and energy stocks. During the session, the market hit a day-high of 155,602 points, showing strong investor confidence after dipping below the 155,000 level in the last session.
Later in the day, the central bank confirmed expectations by holding the rate steady. This came amid concerns that flood damage and rising food prices could push inflation higher. Analysts believe the decision offered clarity and stability, encouraging fresh buying across key sectors.
Waqas Ghani of JS Global noted that despite fiscal challenges and external pressures, the central bank’s steady stance boosted market confidence. KTrade Securities added that stocks like Fauji Fertiliser, UBL, DG Khan Cement, and Hub Power led the rally, supported by solid earnings and long-term economic optimism.
Trading volume, however, dipped slightly to 857.6 million shares, with total value recorded at Rs32.7 billion. Out of 482 companies, 243 advanced, 205 declined, and 34 remained flat. Pace Pakistan led volumes with 77.8 million shares, closing at Rs8.47, up Rs1.00.