Stocks rally ahead of interest rate cut
Shrugging off overnight gloomy conditions stemming from mounting political tensions and a delay in loan approval by the IMF board, the equities staged a recovery ahead of the announcement of an anticipated cut in the interest rate, propelling the index above 79,000 on Thursday. Ahsan Mehanti of Arif Habib Corporation said stocks closed bullish amid speculations over SBP key policy rate announcement. He said a steady rupee, falling inflation, surging remittances and exports, and an expected resolution of the external financing gap for securing IMF’s board approval for a 37-month $7bn Extended Fund Facility boosted investor confidence. In its review, Topline Securities observed that contrary to the overnight bearish trend, stocks began trading on a bullish note ahead of the SBP’s Monetary Policy Committee meeting, scheduled for an announcement later in the evening.