The stock market opened on a strong note on Tuesday, extending gains after the State Bank of Pakistan (SBP) delivered a larger-than-expected interest rate cut to support the economy amid easing inflation and geopolitical uncertainty.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index rose to an intraday high of 115,093.10, gaining 990.87 points, or 0.87%, over the previous close of 114,102.23. The session’s low was recorded at 114,241.56, still reflecting an increase of 139.33 points or 0.12%.
On Monday, the SBP slashed the benchmark interest rate by 100 basis points to 11%, the sharpest cut since June 2024, as inflation pressures softened and risks from US tariffs and regional tensions loomed.
The move caught most analysts off guard, with many expecting either no change or a modest 50 bps reduction. The policy rate now stands at its lowest level in three years, bringing cumulative cuts over the past 11 months to 1,100 basis points.
Meanwhile, the PSX closed largely unchanged on Monday, with the KSE-100 index edging down by 11.7 points to settle at 114,102.23. The session had seen highs of 114,552.21 and a low of 113,077.67 as investors awaited clarity from the central bank’s policy decision.
