A stockbroker on the floor of the Karachi Stock Exchange.—Reuters Photo

KARACHI: Pakistani stocks closed higher on Monday after the inflation rate hit a 33-month low, boosting the confidence of investors, traders said.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.80 per cent, or 123.91 points, higher at 15,568.73 – a four-year high – on total volume of 135.80 million shares.

“Investors are hopeful that because inflation came down sharply, there is a high probability that the state bank will reduce the interest rate,” said Mohammad Sohail, chief executive at Topline Securities.

The central bank is expected to announce a monetary policy decision on October 5.

Pakistan’s consumer price index (CPI) rose 8.79 per cent in September from a year earlier, the Pakistan Bureau of Statistics said on Monday.

The year-on-year rate in August was 9.1 per cent. On a month-on-month basis, the CPI increased by 0.79 per cent from August, according to the bureau.

In the currency market, the Pakistani rupee ended weaker at 94.88/94.94 to the dollar compared to Friday’s close of 94.75/94.80.

Overnight rates in the money market ended at 7.50 compared to 10.40 per cent on Friday.


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