Positive sentiment returned to the Pakistan Stock Exchange (PSX) on Wednesday, driven by expectations of a policy rate cut in the Monetary Policy Committee (MPC) meeting scheduled later in the day. The benchmark KSE-100 Index gained over 500points during the trading session.
At 12pm, the benchmark index was hovering at 138,471.20 level, a gain of 506.39 points or 0.37%.
Buying was observed in key sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, power generation and the refinery sector. Index-heavy stocks, including HUBCO, NRL, OGDC, POL, MEBL, UBL and HBL traded in the green.
The MPC of the State Bank of Pakistan (SBP) will meet today (Wednesday) for deliberation on the key economic issues to decide on the Monetary Policy.
In the previous meeting held on June 16, 2025, the Committee kept the policy rate unchanged at 11%, as inflation was expected to trend up in the coming months. Most market analysts anticipate a rate cut of 50 to 100 basis points, citing a current account surplus and a rise in foreign exchange reserves.
On Tuesday, the PSX experienced a volatile session, as early bullish momentum gave way to heavy selling pressure, pulling key indices deep into negative territory by the close. The benchmark KSE-100 Index closed at 137,964.82 points, marking a sharp decline of 1,415.24 points or 1.02%.
Globally, Asian stocks rose modestly on Wednesday, with investors cautious after trade talks between the US and China ended without any substantive agreement and ahead of the Federal Reserve’s policy announcement.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.3%, led by gains for Taiwanese stocks, after US stocks ended the previous session with mild losses as traders braced for a slew of corporate earnings.
Australian shares were up 0.7%, while Japan’s Nikkei stock index slid 0.03%, and Hong Kong’s Hang Seng Index skidded 0.4%. The euro edged up from a one-month low, rising 0.2% to $1.1564, as markets weighed the EU’s trade deal with the Trump administration.
Traders are preparing for several central bank decisions, key economic reports and corporate earnings during the next few days, culminating in US President Donald Trump’s August 1 tariff deadline.
The Federal Reserve is expected to leave interest rates unchanged at its policy meeting later on Wednesday, though it could see a rare dissent by some central bank officials in favour of lower borrowing costs.
This is an intraday update
