ISLAMABAD: The Pakistan Stock Exchange (PSX) opened the week on a positive note and surged by more than 3,000 points on Monday, amid hopes of further policy rate cuts.
The benchmark KSE-100 index soared by 3,907 points, or 3.51 percent percent, to close at 115,258 points, compared to Friday’s close of 111,351 points.
Investor activity remained vibrant, with a total volume of 1,058 million shares traded and a turnover of Rs40.8 billion, while hopes of further policy rate cut boosted market confidence.
“This upward momentum was fueled by optimism surrounding anticipated increases in equity fund allocations by local institutions ahead of the new year,” Topline Securities said in its market review.
“Adding further impetus was a statement from the finance minister over the weekend, suggesting a potential decline in interest rates to single-digit levels in the future.”
Pakistan’s central bank cut its key policy rate by 200 basis points to 13 percent on Dec. 16, it said in a statement. This was a fifth straight reduction since June as the country keeps up efforts to revive a sluggish economy with inflation easing.
The move followed cuts of 150 bps in June, 100 in July, 200 in September, and a record cut of 250 bps in November, that have taken the rate down from an all-time high of 22 percent, set in June 2023 and left unchanged for a year. It takes the total cuts to 900 bps since June.
Pakistan’s economy also grew by 0.92 percent in the first quarter of the fiscal year 2024-25, despite a contraction in the industrial sector, according to data approved by the National Accounts Committee, and released by its Statistics Bureau on Monday.
The growth was driven by positive performances in the agriculture and services sectors, which grew by 1.15 percent and 1.43 percent, respectively, in the first quarter of the fiscal year which ends in June 2025.
Pakistan stocks surge by more than 3,000 points on hopes of policy rate cuts
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Pakistan stocks surge by more than 3,000 points on hopes of policy rate cuts
- Investor activity remained vibrant on Monday, with a total volume of 1,058 million shares traded
- Pakistan cut its key policy rate by 200 basis points to 13 percent on Dec. 16, marking fifth straight reduction
Pakistan warn England’s flaky batting to expect a trial by spin
- Pakistan desperately need a win after their first match against New Zealand was washed out
- A defeat would put England, who skittled Sri Lanka, through to the semis with a game to spare
Pallekele: Pakistan on Monday warned England’s inconsistent batting line-up to expect a trial by spin when the teams clash in the T20 World Cup Super Eights.
Pakistan batsman Sahibzada Farhan told reporters that England struggled to 146-9 against Sri Lanka’s spinners on Sunday.
Farhan said that England can expect more of the same from Pakistan’s spinners when they meet on the same Pallekele ground in Kandy on Tuesday night.
Pakistan desperately need a win after their first match against New Zealand was washed out.
A defeat would put England, who skittled Sri Lanka for 95 to win by 51 runs, through to the semifinals with a game to spare.
Pakistan would then need to beat Sri Lanka in their final Super Eights match and hope other results go their way to reach the last four.
“What we saw in the Sri Lanka-England game was that the ball was gripping and England struggled against spin,” said the in-form opener Farhan on Monday.
“Sri Lanka have one or two spinners but we have five in all so we will give England a tough time on a pitch that looks good and will grip,” said Farhan.
Pakistan’s spinners have taken 26 wickets in the four matches so far. Their seamers have dismissed only seven batsmen.
History will be against Pakistan as they have never beaten England in three previous Twenty20 World Cup clashes.
“We are confident and our morale is high,” said Farhan, who scored an unbeaten 100 against Namibia in Pakistan’s final group match.
“We are focused on this match to win and progress.”
Farhan, who tops the T20 World Cup run-scoring chart with 220, said he was ready for the threat of England’s express pace bowler Jofra Archer.
“Facing Archer will not be difficult because I have faced similar bowlers in Pakistan,” said Farhan.
“So if he has plans against me, I also have plans against him.”
Pakistan are likely to bring in spinner Abrar Ahmed in place of seaming all-rounder Faheem Ashraf.
England may name an unchanged side for the fifth match in succession with Liam Dawson, Will Jacks, Adil Rashid and Jacob Bethell providing their spin options.
Sri Lanka and New Zealand are the two other teams in Pakistan and England’s Super Eights group. They face each other in Colombo on Wednesday.
The top two teams will qualify for the semifinals.
