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Stockbroker monitors share prices during a trading session at the Pakistan Stock Exchange (PSX) in Karachi, 21 January 2025. — INP
#PSX #rises #hopes #rate #cut #dividend #announcements
The stock market extended its rally on Friday, with a meeting of the next Monetary Policy Committee (MPC) to reduce interest rates and cut interest rates in foreign purchases, especially in the cement sector. Expect
Market emotions were promoted by positive developments, which raised hopes of a billion dollar debt obtained from Middle East banks and the strong weather of corporate income, which further further pushed the speed of recovery. –
The Pakistan Stock Exchange (PSX) Benchmark’s SE -100 Index climbed 1,255.19 points or 1.1 % to touch the intra -height of 115,292.98. During the initial trade, the market recorded a small number of 114,383.16, which reflects the strong sentiments of investors.
“Expectations of a decline in rate on Monday after production decline yesterday. It is a new billion dollar loan from Middle East banks and buying by foreigners, especially in the cement sector, Ismail Iqbal Securities CEO Ahfaz Mustafa said.
He added that the current result season has also promoted the buying activity as investors expect profit announcements.
On Wednesday, the government collected Rs 326 billion through the Treasury Bill (T) auction, though it has decreased less than a target of Rs 350 billion. Production on T-Blas fell 20-41 20 points, reinforcing expectations of 100 points cut in SBP policy rate, which is scheduled to be announced on Monday, January 27.
It is expected that inflation in Pakistan will continue its downward trend, January consumer price index (CPI) will likely drop 2.8 percent to the lowest level since November 2015. According to JS Global, this reduction is due to a high basic effect despite the slightest minor. An increase of 0.6 % monthly a month.
The average inflation is predicted 6.7 % for the first seven months of fiscal year 25, which is significantly lower than 28.7 % registered in the same period last year.
Meanwhile, Pakistan’s foreign exchange reserves, organized by the State Bank of Pakistan (SBP), fell $ 276 million in the week ended January 17 to $ 11.449 billion, which is attributed to external debt payments. Reserves are enough to meet imports more than two months.
However, the pressure on the reserves was reduced last week when the United Arab Emirates confirmed the rollover of $ 2 billion reserves for another year.
On Thursday, Prime Minister Shahbaz Sharif welcomed the World Bank’s launch of the country’s partnership framework for billions of dollars for Pakistan, which extends to 35 fiscal year by fiscal year 26. He called it a “timely intervention” to tackle Pakistan’s economic, poverty and climate challenges. The move is expected to support important development projects across the country.
In addition, the decision to implement the United Arab Emirates reserves and the government’s efforts to secure short -term loans from the Middle East banks have provided financial support.
Finance Minister Mohammed Aurangzeb recently confirmed a $ 1 billion loan deal with two Middle Eastern entities at an interest rate of 6 % -7 %. Loans were short-term or for a year.
Stocks were also recovered on Thursday, with the Benchmark’s SE -100 index scoring 594 points, reflecting investors’ hopes about further financial softening this month. The index closed at 114,037.79 points, which is 0.52 percent more than 113,443.43 points in the previous session.
The announcement of the upcoming SBP’s upcoming financial policy is a central point for market participants. Investors are hopeful about further financial relaxation, which help in inflation and declining production.
The MPC meeting will be held on Monday, January 27. Later, on the same day, Governor SBP Jamil Ahmed will announce the decision of the financial policy in a press.
