PSX near 89,000 as rate cut bets extend record-setting rally

The Pakistan Stock Exchange (PSX) closed just below 89,000 points, setting a new record high. Rate-sensitive sectors saw gains, driven by expectations of the central bank maintaining a hawkish stance due to improving macroeconomic indicators. Investors focused on sectors like auto-makers, cement, and banks as corporate results for the first quarter of the year came in. The approval of an IMF loan and recent political developments have also boosted market sentiment. Speculations of a rate cut by the State Bank of Pakistan have further fueled the rally, making the PSX one of the top-performing equity markets globally. Inflation has been declining, leading to expectations of further easing by the central bank.