Investors saw a return of positivity at the Pakistan Stock Exchange (PSX), as the benchmark KSE-100 Index rose over 550 points during the trading session on Tuesday.
At around 10:10am, the benchmark index was being traded at 38,996.39 level, an increase of 552.80 points or 1.44%.
Experts attributed the positivity to the policy rate hike announced by the central bank on Monday.
Across the board buying was witnessed, as index-heavy sectors including automobile, cement, chemical, commercial banks, oil & gas exploration companies, and oil & gas marketing companies were trading in positive.
On Monday, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP), in line with market expectations, announced an interest rate hike of 100 basis points, taking it to 17%. This is the highest level of the key policy rate since October 1997.
“The committee noted that inflationary pressures are persisting and continue to be broad-based. If these remain unchecked, they could feed into higher inflation expectations over a longer-than-anticipated period. The MPC stressed that it is critical to anchor inflation expectations and achieve the objective of price stability to support sustainable growth in the future,” stated MPC.
Moreover, the central bank, in order to clear the stuck consignments at ports, advised banks to provide one-time facilitation to all those importers who could extend their payment terms to 180 days or arrange funds from abroad to settle their pending import payments.
This is an intra-day update
Read More: Intra-day update: KSE-100 up over 550 points – Markets