On Thursday, the Pakistan Stock Exchange (PSX) saw continued bullish activity as shares crossed the 88,000 milestone during intraday trading.
The KSE-100 index rose by 851.11 points, or 0.98%, to 88,045.64 points by 10:56 a.m., up from the previous close of 87,194.53 points.
Read: Pakistan Stock Exchange Soars with KSE-100 Nearing 87,000 Mark
Mohammed Sohail, CEO of Topline Securities, linked the surge to domestic buyers aggressively purchasing stocks due to falling bond yields and anticipating a significant reduction in the monetary policy rate.
Analysts expect the State Bank of Pakistan (SBP) to lower its policy rate by 200 basis points on November 4, the fourth reduction since June, driven by decreasing inflation, a modest current account deficit, and rising remittances.
Yousuf M. Farooq, director of research at Chase Securities, remarked, “We are in a bull market, and market participation is increasing.” He observed that combined volumes for the ready and futures counters had exceeded Rs40 billion for two consecutive days and predicted a continued shift of funds towards equities.
The finance ministry confirmed via a post on X that Finance Minister Muhammed Aurangzeb had met with ITFC representatives in Washington and acknowledged their commitment to a $3 billion commodity financing arrangement over the next three years.
Ashraf noted that investors expect “further aggressive monetary easing” in the upcoming policy announcement, given that real interest rates remain above 10% despite total cuts of 4.5% in the key policy rate since June.
He added, “Stocks poised to benefit from monetary easing and ongoing structural reforms are expected to perform exceptionally well.”
Yesterday, the anticipation of an imminent rate cut in the next monetary policy announcement, scheduled for November 4, spurred a share rally.
