The Pakistan Stock Exchange (PSX) witnessed a mixed session on Wednesday as investors remained cautious ahead of the State Bank of Pakistan’s (SBP) policy rate announcement. However, late-session buying lifted the benchmark KSE-100 index by nearly 450 points.
The index fluctuated between the intra-day high of 139,018.88 and low of 137,658.81. It closed with a gain of 447.43 points, or 0.32%, at 138,412.25.
Sentiment shifted in the latter half of the session after the SBP unexpectedly maintained its benchmark policy rate, defying market expectations of a 50-basis-point cut. The decision triggered a broad-based rally in the banking sector, with notable gains in major names such as United Bank, Habib Bank, and MCB Bank.
“The market ended on a positive note as banks rallied following the SBP’s announcement to keep the policy rate unchanged, contrary to market expectations of a cut of 50 basis points,” AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune. Additionally, Systems Limited surged after acquiring British American Tobacco’s SAA services to fuel its future growth.
He expected interest rates to decline to single digits, supported by easing inflation and stability in the foreign exchange market due to lower debt repayments this year.
KTrade Securities, in its market wrap, wrote that stocks saw a mixed session as investors awaited the central bank’s policy rate decision. The KSE-100 index fluctuated between the intra-day low of 137,659 and high of 139,019, eventually closing up by 447 points at 138,412.
Read More: SBP keeps interest rate at 11%
Late in the session, the SBP announced that it had kept the interest rate unchanged, citing inflationary pressures and concerns over the trade deficit. Market players also remained focused on a potential US-Pakistan trade deal, which is likely to be finalised soon, it said.
Arif Habib Limited (AHL) observed that the KSE-100 rose from the support zone to regain the 138k level. Some 41 shares rose, while 59 fell, with Systems Ltd (+6.9%), United Bank (+2.08%), and Habib Bank (+3.21%) contributing the most to index gains. On the contrary, Fauji Fertiliser (-0.7%), Lucky Cement (-1.51%), and Engro Holdings (-0.94%) were the biggest drags.
In corporate news, Engro Fertilisers announced 1HCY25 earnings per share (EPS) of Rs6.34 (+10% YoY) and a dividend of Rs6.50 per share, which came in line with expectations.
In financial news, Finance Minister Muhammad Aurangzeb is in the US to conclude trade talks, with final discussions this week, while the SBP held its benchmark rate steady for the second meeting amid inflation and tariff uncertainty, despite expectations of a reduction.
Overall trading volumes decreased to 425.8 million shares compared with Tuesday’s tally of 606.3 million. Traded value stood at Rs25 billion. Shares of 476 companies were traded. Of these, 152 stocks closed higher, 290 fell, and 34 remained unchanged.
The Bank of Punjab led the volumes chart with trading in 24.8 million shares, rising Rs0.25 to close at Rs13.72.
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