The Pakistan Stock Exchange (PSX) advanced sharply on Monday morning, with the KSE-100 Index up 950 points to 155,389.90 by 10:05 am. The rally was driven by strong buying in banks, fertiliser, energy, and refinery stocks.
Read More: Bulls Dominate PSX as KSE-100 Extends Gains Past 153,000
This rebound comes after a turbulent week that saw the index touch a record intraday high of 157,817 before profit-taking dragged it down to 154,440 by Friday’s close.
Domestic investors are also closely monitoring the State Bank of Pakistan’s Monetary Policy Committee meeting today. Analysts expect the policy rate to remain unchanged at 11% due to rising inflation, worsened by recent floods and energy price adjustments.
The PSX movement also reflects a broader global trend. Asian markets opened cautiously as investors braced for a week of major central bank decisions.
The US Federal Reserve is expected to cut rates by 25 basis points, with futures already pricing in deeper easing this year. The Bank of Canada is also set to reduce rates, while China considers trimming market rates amid a sluggish recovery.
With global monetary policy tilting toward easing, Pakistan’s cautious stance will be closely watched.
The market’s sustained rally hinges on domestic factors, with the State Bank’s Monetary Policy Committee meeting being the most crucial event. While an unchanged policy rate is widely expected, the market will closely monitor the decision for signs of future direction. Beyond this, a clear long-term strategy for economic stability and fiscal policy will be essential to maintain investor confidence and build on Monday’s gains.
