Stocks scale new peak on imminent rate cut

The stock market extended its record-setting spree to a sixth straight session on Monday amid anticipation of a more significant cut in the policy rate, which fuelled the shifting of money from banks to the equity market, propelling the KSE 100 index to settle above 90,000 for the first time. Initially, the benchmark KSE-100 index suffered a loss of 261.24 points, hitting an intraday low at 89,732.73, but aggressive value-buying in the later hours pushed the index to the day’s high at 91,054.84, gaining 1,060.87 points. However, the index settled at a record 90,195.52, adding 201.55 points or 0.22pc day-on-day. Ahsan Mehanti of Arif Habib Corporation said stocks hit an all-time high in the earnings season rally as investors expected a major fourth straight cut in the SBP policy rate early next month.