KARACHI – Bulls rule the Pakistan Stock Exchange (PSX) on the opening day of the new business week as KSE 100-index crossed 92,000 barrier on Monday for first time in history.
During intraday trading, the 100-index has gained 1202 points to reach all-time high of 92,062 amid higher buying activity as compared to previous close of 90,859.85 points.
Experts have attributed positive momentum in stocks to political stability, and anticipation of cut in policy rate.
The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) is all set to hold a meeting today, November 4, to decide about the policy rate for next two months.
Reports claimed that policy rate is expected to drop by 200 basis points amid declined in inflation and shrinking current account deficit.
The inflation has dropped to to the lowest in three and half years. Ahead of the review, financial experts has predicted a decrease of 200 basis points in the interest rate, which could bring the policy rate down to 15.5 per cent. They said decreasing inflation rate will have an impact on the decision.
As most of the traders and industrialists eye 200bps cut, some are speculating bigger reduction despite that more cut could exert pressure on rupee and impact foreign investment, especially in other emerging markets.
