Shares at PSX climb more than 500 points ahead of MPC meeting

Published January 20, 2025
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 maintained control of the trading floor as shares at the Pakistan Stock Exchange (PSX) climbed 500 points on Monday ahead of the central bank’s Monetary Policy Committee (MPC) meeting on January 27.

The benchmark KSE-100 index climbed 817.68 points, or 0.71 per cent, to stand at 116,089.76 points from the previous close of 115,272.08 at 2:29pm.

Finally, the index closed at 115,844.81, up by 572.73 or 0.5pc, from the last close.

Mohammed Sohail, chief executive of Topline Securities, attributed the upward trajectory to “signs of political stability, along with expectations of another rate cut, helping sentiments”.

Awais Ashraf, director research at AKD Securities, said, “The resolution of political uncertainty following the verdict in a graft case has boosted investor confidence.

“Investors are optimistic about an improving economic outlook and are expecting a potential reduction in the policy rate during the upcoming Monetary Policy Committee (MPC) meeting,” he added.

Ashraf noted that a record number of accounts had opened at the PSX over the past three months, highlighting “the growing trust of individual Pakistanis in the improving economic conditions and their increasing propensity to save amid government drive of documentation”.

“This sentiment is reflected in record individual buying activity, amounting to $22.1 million this month,” he said.

The State Bank of Pakistan (SBP)’s MPC is due to meet on Jan 27 to decide on its key interest rate.

In a survey of market participants conducted by Topline Securities, a brokerage firm in Karachi, it was noted that 61pc of participants expected a rate cut of 100 basis points (bps).

Among the remaining participants, 17pc anticipated a rate cut of 200bps, 7pc expected a rate cut of 150bps, and 6pc of the participants expected no change in the monetary policy.

“In our view, participants are expecting a rate cut due to high real rates of 950bps in Jan 2025 compared to [the] historic average of 200-300bps, despite 900bps cut in total interest rates in last five consecutive meetings since June 2024,” the brokerage firm said.

Furthermore, it highlighted that real rates are high as the monthly inflation reading for January 2025 was expected to clock in at around 3.5pc on the back of faster food disinflation and negative electricity prices adjustments (FCA).

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

Opinion

Editorial

Afghan flare-up
Updated 07 Dec, 2025

Afghan flare-up

THE fragile ceasefire between Pakistan and Afghanistan has been tested yet again, this time with an exchange of fire...
Neglecting food safety
07 Dec, 2025

Neglecting food safety

FOOD adulteration is a major public health concern in Pakistan — in both remote and major urban centres. A report...
Con jobs
07 Dec, 2025

Con jobs

PAKISTAN’s perfect storm of issues — unemployment, few opportunities and a failing economy — offer a field day...
Fiscal concerns
Updated 06 Dec, 2025

Fiscal concerns

Talks on the 11th Award have opened at a politically charged moment amid attempts by the centre to undo the constitutional protection given to the existing provincial share under the NFC Award.
Hero worship
06 Dec, 2025

Hero worship

IT seems that, like public representatives, our national heroes will also be selected for us. The Senate deputy...
KU institute
06 Dec, 2025

KU institute

THE Sindh government’s decision to separate the Institute for Chemical and Biological Sciences from Karachi...