PSX rebounds despite initial investor sell-offs

The Pakistan Stock Exchange (PSX) experienced initial pressure from investor sell-offs during the past week but rebounded as positive economic developments unfolded. The State Bank of Pakistan (SBP) made a key move by cutting its policy rate by 200 basis points, reducing it to 17.5%—a level unseen since April 2020. This rate cut triggered a drop in KIBOR (Karachi Interbank Offered Rate) rates by 25 to 119 basis points across various tenors, a shift welcomed by market participants. On the International Monetary Fund (IMF) front, the government made significant progress, with Pakistan's agenda officially added to the IMF's board meeting set for September 25, 2024. SBP reserves also saw a notable rise of $30 million, reaching $9.5 billion, while the Pakistani rupee appreciated by 0.15%, settling at Rs278.2 against the US dollar.