PSX hits another record high amid policy rate cut hopes
Business
The benchmark 100 index has crossed 105,000 milestone in historic first
KARACHI (Dunya News) – The Pakistan Stock Exchange (PSX) continued its record run on Wednesday as it crossed 105,000 milestone amid hopes of cut in policy rate due to declining inflation in the country.
During intra-day trading, the benchmark 100-index witnessed gains of 553.36 points till 10am to reach another record high of 105,112.43 points compared to previous close of 104,559.07 points. Later, it closed at 105,104.
It comes amid high-flying expectations that the State Bank of Pakistan (SBP) would further decrease the key policy rate. The Monetary Police Committee (MPC) of the central bank is set to meet on Dec 16.
The hopes for cut in policy rate were fuelled by a significant decline in inflation rate in Pakistan as it was recorded at 4.9 percent in November, the lowest reading in the six and half years.
Also Read: CPI inflation decelerates to 4.9pc in November
The Pakistan Bureau of Statistics said the inflation in October this year was 7.2pc.
The lower inflation rate is likely to result in more monetary easing, leading to further decline in cost of capital for businesses and industries.
A day earlier, the 100-index also witnessed bullish trend, gaining 1,284.13 points more points, a positive change of 1.24 percent, closing at 104,559.07 points.
Around 1.766 billion shares were traded during the day as compared to 1.556 billion shares the previous trading day, whereas the price of shares stood at Rs 56.624 billion against Rs. 47.097 billion on the last trading day.
