Bulls retained their control over the trade floor as shares at Pakistan Stock Exchange (PSX) surged more than 800 points in intraday trade on Monday.
The benchmark KSE-100 index climbed 855.89 points, or 0.95 per cent, to stand at 90,849.85 points from the previous close of 89,993.96 points at 10:42am.
On Friday, the stock market had rallied on the back of investors anticipating a major interest rate cut in the upcoming Monetary Policy Committee (MPC) meeting on November 4.
Most analysts believe that the State Bank of Pakistan (SBP) will reduce its policy rate by 200 basis points in its upcoming meeting on November 4, marking the fourth consecutive cut since June, thanks to a decline in inflation, a low current account deficit and higher remittances.
Last week, in a survey conducted by Topline Securities, the brokerage firm noted that 85pc of market participants expected that the central bank would announce a minimum rate cut of 200 basis points.
“We believe that the larger rate cut expectations in the upcoming monetary policy meetings are driven by the single-digit inflation reading of 6.9pc in Sept 2024,” the firm said, adding that that the inflation trajectory was expected to continue in October within a range of 6.5pc to 7.0pc.
More to follow
