PSX hovers above 171,000 as policy rate fuels investor confidence
Business
The Pakistan Stock Exchange (PSX) saw a bullish rise, with the KSE-100 index gaining 610.24 points to 171,351.58. The boost came after a 50-basis point cut in the policy rate by SBP.
KARACHI (Dunya News) – Pakistan Stock Exchange (PSX) on Tuesday maintained it bullish momentum as a dip in policy rate and petroleum has boosted investor confidence.
During early session, the KSE-100 index has gained 610.24 points to climb to 171,351.58 points, reflecting a positive change of 0.36 percent compared to previous close of 170,741.34 points.
A day earlier, the State Bank of Pakistan (SBP) announced a cut of 50 basis points in the policy interest rate as part of its latest monetary policy decision.
According to the monetary policy statement issued by the central bank, the new policy rate has been set at 10.50 percent.
Economic analysts had widely expected the interest rate to remain unchanged at 11 percent; however, the Monetary Policy Committee (MPC) took an unexpected decision to reduce the rate by 50 basis points.
It is noteworthy that earlier in May 2025, the State Bank had reduced the policy rate by 100 basis points, after which the interest rate had been maintained at 11 percent for several consecutive policy periods.
Furthermore, the government has announced revised prices of petroleum products, offering relief to consumers by reducing the price of high-speed diesel, while keeping petrol prices unchanged.
According to a notification issued by the Ministry of Finance, the price of high-speed diesel has been cut by Rs14 per litre, whereas the price of petrol has been maintained.
