Policy rate cut propels PSX to record high

Pakistan Stock Exchange (PSX) surged to a new all-time high on Monday as the KSE-100 index climbed nearly 1,100 points to close just short of the 92,000 mark. Investor optimism was fueled by expectations of a substantial policy rate cut by the State Bank of Pakistan (SBP) later in the day, after a recent 3.6% reduction in National Savings Scheme (NSS) rates due to the easing inflation, which fell to 7.2% in October. Major catalysts for the rally included Qatar's $3 billion investment commitment and Saudi Arabia's $2.8 billion investment pledge, alongside an 18% increase in petroleum product sales in October and continued stability of the Pakistani rupee. "Stocks closed at an all-time high as investors eyed a major SBP rate cut later in the day after NSS rates were slashed up to 3.6% owing to a lower inflation reading of 7.2% for October," said Arif Habib Corp Managing Director Ahsan Mehanti.