Bulls stay the course as PSX gains ground
The KSE 100 index closed up 796 points at 156,467 on Tuesday, as a positive economic outlook lifted market sentiment, as investors reacted favourably to the State Bank of Pakistan’s (SBP) latest remarks on the flood crisis and the broader economic environment. The SBP’s in its monetary policy statement provided reassurance, stating that while the flood situation remains ongoing, its economic impact has been notably less severe than past crises. This, coupled with the central bank’s decision to keep the policy rate at 11pc, bolstered confidence in Pakistan’s economic resilience. Analysts viewed the SBP’s cautious stance as a sign of stability amid ongoing challenges, including the climate crisis. According to Topline Securities, investor optimism was further supported by the normalisation of the Margin Trading System (MTS) rate to 14.95pc, which provided relief to leveraged investors and improved market liquidity. Speculation around the resolution of the circular debt issue also contributed to the positive mood, especially within the energy sector, where stocks like Oil and Gas Development Company, Pakistan Petroleum, and Pakistan State Oil (PSO) saw notable gains.