KARACHI: Pakistan’s stock market experienced a significant rebound monday, with the benchmark KSE-100 index surging 945 points, or 0.61 per cent, to close at 155,384.51. The rally followed the State Bank of Pakistan’s (SBP) decision to maintain the policy rate at 11 per cent, aligning with market forecasts.
The Monetary Policy Committee’s decision to hold rates steady offered relief to investors navigating concerns surrounding the economic fallout from recent floods,inflationary pressures,and disrupted supply chains. This policy continuity signals a cautious approach amidst broader macroeconomic challenges.
Value-hunting across key sectors spurred widespread buying, enabling the index to recover from Friday’s losses, wich were fueled by anxieties over the IMF program and sluggish economic growth. The index reached an intraday high of 155,602.
Fauji Fertiliser, United bank, and Hub Power were major contributors to the gains, collectively adding 448 points to the index. Conversely, Habib Bank, Bank Al-Habib, and Engro Holdings tempered some of the upward momentum, subtracting 91 points.
Trading activity remained strong, though slightly below previous sessions, with a total volume of 856 million shares and a turnover of Rs32.6bn. PACE topped the volume chart, recording 77.8 million shares, indicating continued retail investor interest.
Market analysts anticipate potential volatility in the coming days due to anticipated profit-taking, despite the prevailing bullish sentiment.
However, the 154,000 level is expected to provide robust support for the index. The PSX’s positive start to the week has bolstered investor confidence, though caution persists amid ongoing economic headwinds.
Published in Dawn, September 16th, 2025
