PSX Gains Over 1,000 Points on Hopes of Interest Rate Cut

The Pakistan Stock Exchange (PSX) had a good opening on Wednesday as investor confidence increased due to expectations of a policy rate drop. The benchmark KSE-100 Index gained 1,005.90 points in early trading, reaching 138,970.71. This marked a 0.73% increase compared to Tuesday’s closing figure of 137,964.81.

Investors are increasingly optimistic that the State Bank of Pakistan may ease interest rates soon. This belief is supported by signs of falling inflation and better economic conditions. As a result, sectors sensitive to interest rates, such as banks, construction, and cement, saw renewed buying interest.

The market’s rebound follows a sharp decline a day earlier. On Tuesday, the KSE-100 Index dropped by over 1,400 points, posting a loss of 1.02%. That session ended with the index at 137,964.82, reflecting cautious investor behavior ahead of expected monetary decisions.

More than 606 million shares were exchanged on Tuesday, indicating that trading activity was still robust. These transactions have a combined value of Rs32.7 billion. A total of 484 companies took part in the session, showing widespread market participation despite recent volatility.

Out of all listed firms, 108 posted gains, 350 saw losses, and 26 remained unchanged. While the overall direction is positive, analysts suggest investors are still watching economic signals closely before making long-term moves.