Key Takeaways
- The KSE-100 Index gained over 950 points following the SBP's rate hike.
- Buying was observed in key sectors including cement, commercial banks, and oil and gas companies.
- The index closed at 163,038.47 points on Monday, up 0.41%.
The Pakistan Stock Exchange (PSX) witnessed a significant surge in trading activity, with the KSE-100 Index gaining over 950 points during the opening minutes of trading on Tuesday. This marked a strong response to the State Bank of Pakistan's (SBP) decision to raise the policy rate by 50 basis points.
At 10:05am, the benchmark index was trading at 163,997.54, up 959.08 points or 0.59%. The gains were observed across various sectors, including cement, commercial banks, oil and gas exploration companies, and oil marketing companies (OMCs).
On Monday, the PSX recovered amid choppy trading, with the KSE-100 Index advancing by 663.59 points, or 0.41%, to close at 163,038.47 points. Investors were cautiously positioning for the anticipated increase in the policy rate, which was announced by the SBP.
Internationally, Asian stocks surged on Tuesday, with tech-heavy South Korea's KOSPI gaining more than 4% in early trading. Japan's Nikkei was 1.9% higher, and MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.2%. Nasdaq futures were up 0.4% after US chip stocks rose 2.8% in overnight trade.
The currency markets remained muted ahead of policy decisions from the Federal Reserve, European Central Bank, and Bank of Japan. Economists expected all three to stand pat on interest rates, with the focus on comments from policymakers to gauge the rates outlook.
In the tech sector, sentiment was boosted by Meta Platforms' plans to raise up to $95 billion in its largest-ever equity fundraising. Additionally, the eagerly anticipated IPO filing of AI bellwether Anthropic, owned by Claude, disclosed steep losses and red-hot revenue growth, further adding to market optimism.
European stock futures dipped 0.23%, reflecting a cautious approach ahead of key central bank meetings that will influence near-term interest rates. The overall market sentiment was positive, with investors looking ahead to more earnings reports and policy announcements.
