Stocks rally 698 points on rate cut hopes

Snapping the five-session losing streak, bulls returned with a bang as hopes enlivened for a cut in the interest rate in the upcoming monetary policy review this month, tossing the benchmark KSE-100 index above the 64,000-point level on Thursday. Topline Securities Ltd said investor optimism is fuelled by expectations of a positive outcome from the meeting with the International Monetary Fund (IMF) regarding the second loan tranche of $700 million. Additionally, overnight T-bills indicated a market inclination towards an anticipated interest rate cut in the upcoming months, evident from substantial participation as investors sought higher yields. The total participation reached around Rs2.75tr before the expected rate drop. As a result, Mari Petroleum Ltd, Pakistan Petroleum Ltd, Oil and Gas Development Ltd, Habib Bank Ltd and Hub Power Company Ltd collectively contributed 406 points to the index.