Expectations of a further interest rate drop at the next Monetary Policy Committee (MPC) meeting and fresh buying activity in the cement industry propelled Thursday’s stock market rally.
The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) recovered from the losses of the previous session, gaining 594.36 points, or 0.52%, to close at 114,037.79. The index fell to 113,234.31 throughout the day after peaking at 114,319.62 intraday.
According to Muhammad Saad Ali, Director of Research at Intermarket Securities Ltd., “the cement industry is driving momentum, partly due to expectations of another interest rate cut in the upcoming MPC.”
“Yesterday’s Treasury bills (T-bills) auction reinforced hopes of at least a 100-basis-point cut,” he stated.
