Bulls returned to the trading floor at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 index climbed more than 400 points during intraday trade on Friday, continuing to stay above the record-high of 72,000 points.

The benchmark KSE-100 index gained 474.42 points, or 0.66 per cent, to stand at 72,445.82 points at 12:29pm from the previous close of 71,971.40.

Yousuf M Farooq, director of research at Chase Securities, said the market “ is building in expectations of a rate cut“.

The State Bank of Pakistan (SBP)’s monetary policy committee (MPC) will meet on April 29 to take a decision regarding the key interest rate policy. Last month, the committee had chosen to maintain the status quo by upholding the key policy rate at 22 per cent for the sixth policy meeting in a row.

A Topline Securities survey from last week stated that 51pc of participants expect the policy rate will remain unchanged at 22pc, while the remaining 49pc anticipate a policy rate cut.

“We believe that the SBP will maintain cautious approach despite the above encouraging trends and adopt a ‘watch and see’ approach until the inflation trend maintain its fall,” the brokerage firm said.

Speaking to Dawn.com, Farooq noted that the sensitive price index was down 1.1 per cent this week while most analysts were expecting inflation to clock in between 17-18pc.

“Lower interest rates translate into higher stock prices,” he said.

More to follow

QOSHE - Shares at PSX climb 400 points in intraday trade - Dawn.com
menu_open
Columnists Actual . Favourites . Archive
We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

Shares at PSX climb 400 points in intraday trade

47 4
26.04.2024

Bulls returned to the trading floor at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 index climbed more than 400 points during intraday trade on Friday, continuing to stay above the record-high of 72,000 points.

The benchmark KSE-100 index gained 474.42 points, or 0.66 per cent, to stand at 72,445.82 points at 12:29pm from the previous close of........

© Dawn Business


Get it on Google Play