PSX edges higher as policy easing anticipation lifts sentiment

• KSE-100 Index closed at 139,018.88, gaining 1,054.07 points, or 0.76%.
• Session's high recorded at 139,018.88, up 1,054.07 points, or 0.76%.
• Index touched intraday low of 137,636.37, dropping 306 points, or 0.22%.

The stock market edged higher on Wednesday as investors positioned themselves ahead of the State Bank of Pakistan’s (SBP) monetary policy announcement later in the day, while sentiment was further supported by robust corporate earnings and strategic business activity.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 138,412.25 points, up 447.44 points, or 0.32%, from the previous close of 137,964.81.

During the session, the index climbed to an intraday high of 139,018.88, gaining 1,054.07 points, or 0.76%, before dipping to a low of 137,658.81, reflecting a decline of 306 points, or 0.22%.

“Stocks recovered sharply higher as investors eye SBP policy easing amid subdued inflation in the SBP announcement later today," said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.

"Strong financial results, surging global equities, and rupee stability played a catalyst role in bullish activity at PSX,” he added.

CEO of Topline Securities Mohammed Sohail explained the reasons for the bullish sentiment as “rate cut expectations and system acquisition announcement”.

The SBP decided to to maintain key interest rate at 11%, surprising analysts who had expected another cut on the back of cooling inflation and the need to further push growth.

The decision was announced by SBP Governor Jameel Ahmed following the Monetary Policy Committee (MPC) meeting.  

One of the major corporate developments boosting sentiment was the approval by Systems Limited (SYS) — Pakistan’s largest listed software firm — to acquire British American Tobacco SAA Services (Pvt) Ltd from BAT International (UK). The acquisition targets a company providing IT-enabled shared services in marketing, human resources, finance, and procurement functions.

In a broader global context, the International Monetary Fund (IMF) raised its economic growth forecast for emerging and developing economies to 4.1% in 2025, up from 3.7%. The upward revision is attributed to policy frontloading and improved expectations for China’s economic outlook. For 2026, the IMF now expects growth of 4%, slightly higher than the previous 3.9% projection.

On Tuesday, the KSE-100 Index had dropped by 1,415.24 points, or 1.02%, to settle at 137,964.82 points from the previous close of 139,380.06. The index hit a high of 140,331.02 and a low of 137,636.37 during the session, as profit-taking and pre-policy uncertainty drove sentiment.