PSX: KSE-100 Index surges on rate cut expectations

The Pakistan Stock Exchange (PSX) experienced a robust buying spree on Friday, driven by anticipations of a significant policy rate cut in the upcoming Monetary Policy Committee (MPC) meeting. 

The benchmark KSE-100 Index soared nearly 1,900 points, closing at 90,859.85, up 1,893.08 points or 2.13%. Initially, trading was range-bound, but momentum surged in the latter half of the session, reaching an intra-day high of 91,133.28. 

Key sectors, including cement, fertilizers, oil and gas exploration, oil marketing companies (OMCs), and power generation, fueled the buying frenzy, with index-heavy stocks like OGDC, PPL, SNGPL, and SSGC trading positively.

This rally follows a trend of strong corporate earnings and the prevailing expectation of a policy rate cut from the central bank. The MPC is set to convene on Monday, November 4. The previous trading session saw profit-taking that pulled the KSE-100 Index down by 1,320 points, closing at 88,966.76. 

Trading volume on the all-share index decreased to 465.86 million from 546.27 million the previous day, while the total value of shares fell to Rs23.09 billion from Rs24.12 billion. Of the 430 companies traded, 220 saw their shares rise, 156 fell, and 54 remained unchanged.

Meanwhile, the rupee appreciated slightly against the US dollar, gaining 0.05% in the inter-bank market, closing at 277.70, an increase of Rs0.15.