A surprise cut in the policy rate by the State Bank of Pakistan lifted investor mood. Share prices jumped. The KSE-100 index crossed a new record during early trade.
The Pakistan Stock Exchange moved higher on Tuesday after the State Bank of Pakistan reduced the policy interest rate. Investors started showing more interest right after SBP’s announcement, according to PSX data.
During early trading, the KSE-100 index rose by 1,071.74 points and reached 171,813.08 points. This showed a 0.62% increase compared to the previous close.
Out of 560 active companies, share prices of 274 companies went up, 133 went down, and 153 stayed unchanged.
Investor Response to SBP Policy Rate Reduction
On Monday, the State Bank of Pakistan announced a cut of 50 basis points in its policy rate. The new policy rate now stands at 10.5%, according to the SBP monetary policy statement.
Many analysts had expected the rate to stay at 11%, but the Monetary Policy Committee (MPC) chose to reduce it.
Earlier, in May 2025, the SBP had already reduced the policy rate by 100 basis points. After that cut, the rate stayed at 11% for several policy reviews.
Lower interest rates usually encourage investment in stocks. This helped improve market mood.
The government also announced new petroleum prices. The price of high-speed diesel was reduced, while petrol prices stayed the same. This added support to market confidence.
What Happened in the Previous Session
The Pakistan Stock Exchange ended Monday’s session on a positive note as buying interest pushed the benchmark index upward.
The KSE-100 index closed at 170,741.35 points, after rising 876.82 points, which equals a 0.52% gain.
Trading Activity
Trading remained active throughout the day. The ready market recorded a total volume of 905.685 million shares, with a traded value of Rs 47.718 billion.
In the previous session, 873.031 million shares were traded, with a value of Rs 40.870 billion, showing higher participation on Monday.
Market capitalization increased to Rs19.405 trillion, up from Rs19.321 trillion a day earlier.
Out of 486 companies traded, 239 had higher share prices, 202 had lower share prices, and 45 had no change in their prices.
