PSX ends in green amid absorbing 50bps rate hike
KARACHI, Oct 27: Pakistan Stock Exchange (PSX) witnessed a strong bullish momentum for the second consecutive session on Tuesday, shrugging off the 50 basis points hike in the monetary policy rate, as the benchmark KSE-100 Index surged by 1,429 points.
According to PSX data, the KSE-100 Index closed at 164,467 points, after gaining 1,429 points during the day. The market absorbed the State Bank of Pakistan’s decision to raise the policy rate by 50bps, with investors focusing on corporate earnings and positive external cues rather than monetary tightening.
During the trading session, the index touched an intraday high of 164,788 points, while the intraday low was recorded at 163,546 points, reflecting strong investor confidence and sustained buying interest throughout the day.
Market analysts said the rally was driven by buying in heavyweight stocks, particularly in the oil and gas, banking, and energy sectors. Declining international oil prices and hopes of easing geopolitical tensions provided further support to the market sentiment, encouraging investors to take fresh positions.
Despite the rate hike, which was largely anticipated by the market, liquidity remained strong. Investors believe that the monetary tightening cycle is nearing its peak and that future economic stability measures and IMF-related developments will keep the market outlook positive.
A total of 402 million shares worth Rs 18.07 billion were traded during the day, indicating healthy volumes and active participation from both institutional and retail investors.
Out of 569 companies traded at the PSX, share prices of 282 companies increased, while 170 companies witnessed a decline and the prices of the remaining companies remained unchanged.
Experts said that declining oil prices in the international market have eased concerns over import bills and inflationary pressures, while hopes of de-escalation in geopolitical conflicts have improved risk appetite globally, which also reflected in the local bourse.
The heavyweight stocks, including exploration and production companies and commercial banks, remained in the limelight and contributed significantly to the index gains.
Market participants expect the positive momentum to continue in the coming sessions, provided global commodity trends remain favorable and there is clarity on the economic front. However, they cautioned that volatility may persist due to monetary policy tightening and external developments.
Overall, the PSX showed resilience by absorbing the rate hike and closing at a strong level, signaling that investors are focusing on long-term fundamentals and buying opportunities in blue-chip stocks.