KARACHI – The Pakistan Stock Exchange (PSX) opened with strong momentum on Wednesday as investors grew hopeful about an interest rate cut in the State Bank’s upcoming monetary policy announcement. The benchmark KSE-100 Index climbed by 1,054.07 points, or 0.76%, reaching an intraday high of 139,018.88 before pulling back slightly during the session.
Market sentiment turned positive as inflation remained under control, and analysts predicted a policy easing move by the State Bank of Pakistan (SBP). The Monetary Policy Committee (MPC) is meeting today, and traders are closely watching the expected size of a potential rate cut. A lower interest rate could reduce borrowing costs and support corporate earnings, fueling investor optimism.
Ahsan Mehanti, CEO of Arif Habib Commodities, said the recovery was driven by hopes of policy easing, strong corporate results, and rupee stability. He also credited a rebound in global equities for boosting investor confidence at the PSX. Meanwhile, Topline Securities CEO Mohammed Sohail added that expectations of a rate cut and a recent system acquisition announcement further lifted sentiment.
Among major corporate developments, Systems Limited — Pakistan’s top listed tech company — received board approval to acquire British American Tobacco SAA Services (Pvt) Ltd from BAT International (UK). The acquisition targets a company offering IT-enabled services in areas like marketing, finance, HR, and procurement, creating more optimism in the tech sector.
On the global front, the International Monetary Fund (IMF) raised its 2025 growth forecast for emerging and developing economies to 4.1%, up from 3.7%. This revision came as a result of early policy actions and a brighter outlook for China’s economy. The IMF also expects a 4% growth rate for 2026, slightly higher than its earlier projection.
Tuesday’s session had seen a sharp fall in the index, which lost over 1,400 points due to profit-taking and uncertainty ahead of the monetary policy meeting. However, Wednesday’s strong rebound reflected renewed investor confidence as hopes rise for an economic turnaround driven by lower interest rates and corporate expansion.