PSX\'s unstoppable rally continues

Pakistan Stock Exchange (PSX) on Monday surged to another record high as the KSE-100 index gained over 900 points, powered by extensive institutional buying and widespread optimism about the policy rate reduction in the upcoming monetary policy announcement. In the morning, the market opened with negative sentiment due to concerns over the advance-to-deposit ratio (ADR) condition for banks, which caused a decline of 1,424 points in the index. However, when local institutions entered the market, it moved into the positive territory and reached the intra-day high of 110,359 points before the close of trading. The rally was driven by the decline in government bond yields, speculation about a larger policy rate cut by the State Bank of Pakistan (SBP) and the stabilising rupee. Analysts highlighted that a rise in global crude oil prices further fuelled investor optimism.