Market rallies as investors anticipate SBP rate cut

Pakistani stockbrokers saw a strong rally in the Pakistan Stock Exchange (PSX) at the beginning of the week, with the KSE-100 index surging over 1,000 points due to investor optimism about a potential rate cut by the State Bank of Pakistan. The market is anticipating a significant rate cut of 200-300 basis points, which is expected to boost investor sentiment. Despite some negative news, such as delays in PIA privatization and IMF not allowing relaxation in tax targets, the market is showing a broad-based rally. The State Bank’s Monetary Policy Committee meeting will review the national economy and provide updates on economic indicators.