KARACHI: The Pakistan Stock Exchange (PSX) rebounded strongly on Monday, with the benchmark KSE-100 index gaining 945 points, or 0.61 per cent, to close at 155,384.51. The rally came after the State Bank of Pakistan (SBP) maintained the policy rate at 11 per cent, in line with market expectations.

The Monetary Policy Committee’s decision to hold rates steady provided relief to investors concerned over the economic fallout from recent floods, inflationary pressures, and disrupted supply chains. The policy continuity signalled a wait-and-see approach amid broader macroeconomic challenges.

Value-hunting across key sectors led to widespread buying, helping the index recover from Friday’s sharp losses, which concerns over the IMF programme and weak economic growth had triggered. The index hit an intraday high of 155,602.

Major support came from Fauji Fertiliser, United Bank, and Hub Power, which collectively added 448 points to the index. However, some of these gains were offset by declines in Habib Bank, Bank Al-Habib, and Engro Holdings, which shaved off 91 points.

Trading activity remained robust, though slightly lower than in previous sessions. Total volume stood at 856 million shares, with a turnover of Rs32.6bn. PACE led the volume chart, recording 77.8 million shares, reflecting sustained interest from retail investors.

Market analysts noted that while the bullish sentiment dominated the session, volatility may persist in the coming days due to expected profit-taking.

However, the 154,000 level is likely to remain a strong support for the index. The PSX’s positive start to the week has helped restore some investor confidence, but sentiment remains cautious amid ongoing economic headwinds.

Published in Dawn, September 16th, 2025