The Pakistan Stock Exchange (PSX) recorded a mixed but ultimately positive session on Wednesday as investors awaited the State Bank of Pakistan’s (SBP) policy rate announcement. Late-session buying lifted the benchmark KSE-100 index by 447.43 points, or 0.32%, to close at 138,412.25.
Throughout the day, the KSE-100 fluctuated between an intra-day low of 137,658.81 and a high of 139,018.88. Market sentiment shifted notably in the afternoon after the SBP unexpectedly held its benchmark policy rate steady, contrary to widespread expectations of a 50-basis-point cut. This decision triggered a broad rally in banking stocks, with United Bank, Habib Bank, and MCB Bank delivering notable gains.
KTrade Securities described Wednesday’s session as mixed, highlighting investor caution ahead of the central bank’s decision. The firm noted that the KSE-100 saw intraday volatility but closed higher following the SBP’s monetary policy announcement, which cited inflationary pressures and concerns over the ongoing trade deficit.
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Additionally, market participants remained attentive to prospects of an impending US-Pakistan trade agreement, which is expected to conclude soon, further influencing investor confidence.
Arif Habib Limited (AHL) observed that the index rebounded from its support zone to surpass the 138,000 level. Of the shares traded, 41 advanced while 59 declined. Systems Ltd (+6.9%), United Bank (+2.08%), and Habib Bank (+3.21%) contributed most significantly to the index gains. Conversely, Fauji Fertiliser (-0.7%), Lucky Cement (-1.51%), and Engro Holdings (-0.94%) were among the biggest laggards.
In corporate news, Engro Fertilisers reported 1HCY25 earnings per share (EPS) of Rs6.34, marking a 10% year-on-year increase, and declared a dividend of Rs6.50 per share, aligning with market expectations.
Read: State Bank of Pakistan Maintains Policy Rate at 11%
On the financial front, Finance Minister Muhammad Aurangzeb is currently in the United States to finalise trade negotiations expected to conclude this week. Meanwhile, the SBP maintained its policy rate for a second consecutive session amid inflation concerns and tariff uncertainties, despite market anticipation for a rate cut.
Overall trading volumes declined to 425.8 million shares from Tuesday’s 606.3 million, with traded value totalling Rs25 billion. Investors exchanged shares of 476 companies – 152 advanced, 290 declined, and 34 remained unchanged. The Bank of Punjab led volumes with 24.8 million shares traded, closing up Rs0.25 at Rs13.72.