KSE-100 index hovers above 116k points after fifth successive rate cut of 2024
Business
Latest rate cut proved another shot in the arm of the stock market
KARACHI (Dunya News) – Two days after the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) reduced the policy rate by 200 basis points to bring it down to 13pc in its last meeting on Dec 16 (Monday), the stocks got a new catalyst.
The Pakistan Stock Exchange (PSX) has already been scaling new peaks with every passing day.
The latest rate cut proved another shot in the arm of the stock market as the benchmark KSE-100 index gained more than 1300 points during the opening hours of trading on Wednesday, hovering at 116,165 points against previous close of 114, 860 points when it witnessed a steep decline of 1308 points.
Buying was all the rage in key sectors including automobile assemblers, cement, fertilizer, oil and gas exploration companies, OMCs and refinery, while selling pressure was witnessed in commercial banks and the power generation sector.
It must be noted that this was the fifth successive policy rate cut since June 2024 when the rate was 22pc.
