Bulls bounce back after steep stumble
Business
Another reason for the current market sentiment is SBP’s upcoming meeting on policy rate cut
KARACHI (Dunya News) – A day after witnessing sudden bearish rally in the Pakistan Stock Exchange (PSX), bullish momentum returned to the market with the benchmark KSE-100 Index hovering at 111,005 points after gaining more than 2000 points against previous close of 108,896 points.
With the cash injection in the form of International Monetary Fund’s loan disbursement and further talks on climate funding, the proverbial bulls have been galloping for the last more than a month.
Another reason for the current market sentiment is SBP’s upcoming meeting on policy rate cut. The Central Bank’s Monetary Policy Committee is expected to meet on Dec 16.
According to market experts, the sudden meltdown in the market was due to the government’s decision to constitute a committee to resolve the pending issue of the Advances to Deposit Ratio (ADR) in the banking sector. But the trend was short-lived.
On Nov 30 last, the Pakistan Stock Exchange (PSX) attained the historic high of 100,000 points on the heels of unprecedented streak of surge in the last one month or so.
The KSE-100 index achieved one milestone after another in November 2024 amid recurring reports of economic stability mainly due to the recent loan disbursement by the IMF.
The reassuring agreement with the international lender and Pakistan economic czar Muhammad Aurangzeb’s subsequent announcement ruling out a mini-budget boosted investor confidence in recent times.
Back on Nov 5, the State Bank of Pakistan cut the policy rate by 250 basis points to 15 percent.
SBP’s relevant committee noted that inflation had declined faster than expected and reached close to its medium-term target range in October.
