A day after the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) announced a 200-basis-point reduction, bringing the policy rate down to 13% on December 16, the Pakistan Stock Exchange (PSX) surged to new heights.
The benchmark KSE-100 index saw an immediate boost, gaining over 800 points during the opening hours of trading and reaching 117,039 points. The latest rate cut — the fifth consecutive reduction since June 2024, when rates were at 22% — further fueled the bullish trend in the market.
Investors flocked to key sectors such as automobile assemblers, cement, fertilizers, oil and gas exploration, and refineries. However, commercial banks and the power generation sector faced selling pressure.
This downward trend in interest rates has acted as a significant catalyst for the stock market, sustaining investor confidence and driving positive momentum across multiple industries.
