KARACHI: The Pakistan Stock Exchange (PSX) KSE-100 Index closed on a strong note at 155,385, gaining 945 points, or 0.61 per cent on Monday.
Bullish sentiment prevailed throughout the day, with the index hitting an intraday high of 155,602, after the State Bank of Pakistan (SBP) decided to keep the policy rate unchanged at 11 per cent during Monday’s Monetary Policy Committee (MPC) meeting.
The decision came in line with market expectations as the central bank weighed easing inflation against emerging risks in the economy.
In a brief announcement, the SBP said its Monetary Policy Committee (MPC) met on September 15 and opted to maintain the status quo, with a detailed statement to be released later in the day. The rate has remained unchanged since May, when the bank concluded a series of aggressive cuts that brought it down from 22 percent to the current level in seven steps.
The benchmark staged a recovery after recent profit-taking, as investors engaged in selective buying at attractive valuations. Healthy participation was seen across key sectors, though overall activity remained largely range-bound, Pearl Securities noted.
According to Ismail Iqbal Securities, the index ended higher despite mid-session volatility, as investors took comfort from the MPC’s decision to maintain the rate. Trading volumes rose to 275 million shares from 241 million in the previous session.
Fertilizer, cement and commercial banks were the major contributors, adding 654 points to the index. Robust performances from FFC, UBL and HUBC together contributed 448 points, partly offset by declines in HBL, BAHL and ENGRO, which dragged the index down by 91 points.
Investor activity remained upbeat, with total traded volume at 856 million shares and turnover at Rs32 billion.