Karachi, December 12, 2023 – Pakistan stocks Tuesday rebounded to hit new record high of 66,426 points amid the central bank keeps policy rate unchanged at 22 percent.
The surge came in the wake of the State Bank of Pakistan’s decision to maintain the policy rate at 22 percent, instilling confidence among investors. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) demonstrated remarkable resilience, gaining 414 points from the previous day’s closing of 66,012 points.
Analysts at Topline Securities Limited noted that after a slight decline in the market the day before, Pakistan’s equity market rebounded significantly on Tuesday. The index increased by 414 points, representing a growth of 0.63 percent and culminating in a historic closing at 66,426 points.
Investors had been closely monitoring the decision of the Monetary Policy Committee (MPC), with prevailing market sentiment suggesting an inclination toward maintaining the existing interest rates. While many expected a status quo, some investors had anticipated a modest rate reduction to stimulate economic activity.
In a crucial move, the State Bank of Pakistan (SBP) announced its decision to keep the policy rate stable at 22 percent. This decision, coupled with positive market sentiment, contributed to the significant uptick in stock prices.
During the trading hours, several sectors made notable contributions to the market’s positive performance. Stocks in the Cement, Auto, Power, Fertilizer, and OMC sectors, including notable companies such as LUCK, MTL, HUBC, EFERT, and SNGP, collectively added 222 points to the index. Conversely, profit-taking activities in stocks such as MCB, UBL, and SRVI resulted in a combined loss of 116 points.
The day was marked by robust trading activity, with a total of 696 million shares exchanged on the stock exchange, amounting to a total value of Rs 26.9 billion. WTL led the volumes chart, with the trading of over 98.8 million shares, underscoring the active participation of investors in the market.
The rebound in Pakistan’s stock market reflects positive investor sentiment and confidence in the country’s economic prospects. The decision to maintain the policy rate at 22 percent, despite global economic uncertainties, indicates a strategic approach by the central bank to manage inflation and support economic stability.
As Pakistan’s stock market continues to set new records, market participants will be closely monitoring economic indicators and policy developments for further insights into the trajectory of the country’s financial landscape. The resilience demonstrated by the market underscores its attractiveness to both domestic and international investors, positioning Pakistan as a compelling investment destination.
