KARACHI – The Pakistan Stock Exchange (PSX) continued its record-breaking rally on Wednesday as investors hope a significant cut in police rate in upcoming revision by the State Bank of Pakistan (SBP).
During intra-day trading, the KSE-100 index surged by 730.14 points, reaching another high of 91,594.23 as compared to its previous close of 90,864.09 points.
An expert told media that bullish trend is ruling the stock market due to various factors, including hopes for cut in policy rate, strong corporate earnings and political stability.
The central bank is slated to convene on November 4 Monday, and policy rate is expected to slash by 200 basis points in its upcoming meeting in what is fourth cut since the start of new fiscal year amid a drop in inflation and a low current account deficit.
The upcoming interest rate reduction is being expected due to a sharp decline in inflation, which comes down to the lowest in 3.5 years while substantial cuts are necessary to invigorate trade and industrial activity, with calls for the rate to be set around 10%, just above the current inflation level.
