KARACHI (The Thursday Times) — The Pakistan Stock Exchange (PSX) recovered from early losses on Monday to close higher, as late buying in heavyweight stocks outweighed nerves ahead of the State Bank of Pakistan’s (SBP) interest rate decision.
The benchmark KSE-100 index gained 663.59 points, or 0.41%, to close at 163,038.47. It had slipped to an intraday low of 161,250.07 before buying in the second half of the session pushed it to a high of 163,477.09.
Later in the afternoon, the SBP raised its policy rate by 50 basis points to 12%, in line with what most of the market had expected. The decision reflects the risk of higher inflation as the conflict between the United States and Iran keeps oil and commodity prices high.
Cement and banks lead
Ahmed Sheraz, an equity trader at KASB KTrade, said trading was volatile amid earlier fears of a 100-basis-point hike, before buying picked up, particularly in cement. Cement makers, investment banks and oil and gas companies contributed positively.
United Bank Limited (UBL), Engro Holdings, Lucky Cement and Oil and Gas Development Company (OGDC) together added 719 points to the index, while Meezan Bank, Engro Fertilizers, Fauji Fertilizer, Pakistan Services and Habib Bank Limited (HBL) took away 367 points.
“The market traded in both directions amid cautious investor sentiment ahead of the SBP’s MPC announcement, with market participants largely anticipating a 50-basis-point hike in the policy rate,” said Ali Najib, deputy head of trading at Arif Habib Limited.
Oil and the region
International oil prices eased after last week’s surge but stayed near six-month highs, with Brent crude hovering close to $115 a barrel. Continued attacks on Saudi Arabia kept investors wary about global energy supplies.
Sheraz said sentiment could stay cautious because of high oil prices, Pakistan’s mediation with Iran alongside Saudi Arabia and Türkiye, Israel’s elections and the upcoming US midterm polls.
