KARACHI: The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index crossed the 48,000 mark on Monday for the first time in almost two years after gaining over 900 points, experts said, while Pakistan’s central bank kept its key rate unchanged at 22 percent.
According to the PSX website, the index had recorded an increase of 1010.93 points at 11:10am, from the previous close of 47,076.99 points. The market eventually closed 957.60 points, or 2.03 percent, up at 48,034.59 points.
“KSE100 crossed 48k level after 24 months,” Arif Habib Limites said. “KSE-100 index went up by 977 points (48,054 pts, +2.07 percent, on intraday basis) DoD; the 48k level crossed after ~24 months (last seen on Aug 23, 2021).”
Since Pakistan secured a badly-needed $3 billion short-term financial package from the International Monetary Fund last month, the market has gained 6,601 points (+15.9 percent).
Meanwhile, the State Bank of Pakistan kept its key rate unchanged at 22 percent after a scheduled meeting of its monetary policy committee, the bank’s governor said at a press conference on Monday. SBP has raised its key policy rate by 12.25 percentage points since April 2022, to curb soaring inflation.
The meeting was the first since the new bailout was approved by the IMF on June 30 for an ailing economy that was teetering on the brink of a global debt default.
The IMF said in its country report following the bailout that the bank must continue with its monetary tightening cycle to tame inflation.
