Shares at PSX climb 1,000 points ahead of MPC meeting

Published November 4, 2024
Bullish momentum witnessed at the Pakistan Stock Exchange (PSX) — PSX data portal
Bullish momentum witnessed at the Pakistan Stock Exchange (PSX) — PSX data portal

Bulls retained control of the trading floor on Monday as shares at the Pakistan Stock Exchange (PSX) climbed 1,000 points in anticipation of Monetary Policy Committee (MPC) meeting, scheduled for later today.

The benchmark KSE-100 index climbed 1,041.88, or 1.15 per cent, to stand at 91,901.73 points from the previous close of 90,859.85 points at 11:20am. Finally, the index closed at 91,938.00 points, up by 1078.15 or 1.19pc, from the previous close.

Sana Tawfik, head of research at Arif Habib Limited, noted that the positive sentiment was due to the “anticipation of rate cut today” and improving macroeconomic indicators such as inflation numbers for October at 7.2pc.

She noted that exploration and production sectors (E&Ps) were “performing because their latest financials show improved receivable collection numbers”.

Yousuf M. Farooq, director research at Chase Securities, also attributed the bullish momentum to “rate cut anticipation, low trade deficit, lower inflation by December and conversion from fixed income funds”.

Awais Ashraf, director research at AKD Securities, said, “Investor enthusiasm is building in anticipation of a policy rate cut in today’s Monetary Policy Committee meeting and record high exports achieved in October.”

“Additionally, signs of improvement in the balance sheets of companies affected by circular debt for the first time in four years have further uplifted market sentiment,” he highlighted, adding that stocks poised to benefit from monetary easing and structural reforms are expected to outperform others.

The State Bank of Pakistan’s MPC meeting will convene today to deliberate interest rates, the policy is of great interest to the stakeholders of the economy as a significant cut in the rate is exp­ected.

Most analysts believe that the central will reduce its policy rate by 200 basis points in its upcoming meeting on November 4, marking the fourth consecutive cut since June, thanks to a decline in inflation, a low current account deficit and higher remittances.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

In fight mode

In fight mode

The bouts between political parties and establishment take a toll on country far more than they do on political parties.

Editorial

Meltdown
08 Apr, 2025

Meltdown

A full-blown trade war is upon us as the era of the rules-based, multilateral trading order is nearly over.
Settling differences
08 Apr, 2025

Settling differences

SOMETHING is stirring within the PTI. Some of its older hands are back in the limelight, ostensibly to make another...
Glacial ingenuity
08 Apr, 2025

Glacial ingenuity

NECESSITY is indeed the mother of invention, as witnessed in Gilgit-Baltistan. In these areas, where climate change...
Going dry
Updated 07 Apr, 2025

Going dry

Authorities should refrain from undertaking any water scheme that infringes on rights of any federating unit to avoid more controversies.
Afghan return
07 Apr, 2025

Afghan return

AS expected, the government of Pakistan is moving ahead with its plan to forcibly repatriate Afghan Citizenship Card...
Hurting women
07 Apr, 2025

Hurting women

MONTH after month, the figures of crimes against women in the country indicate that our society is close to...