Stocks skyrocket as investor optimism returns

In stark contrast to the previous two days' downturn, the Pakistan Stock Exchange (PSX) rebounded in a remarkable fashion as it soared nearly 1,900 points and closed just shy of the record high. Driven by expectations of a significant reduction in the State Bank of Pakistan's (SBP) policy rate, the KSE-100 index soared to the intra-day high of 91,133.28 points towards the close of trading. Investors ignored the range-bound trading earlier in the day and bought attractive stocks in the latter half to add to their portfolios, taking cue from a single-digit inflation reading for October. Additionally, the finance minister stated the other day that the International Monetary Fund (IMF) had lowered its inflation forecast for the current year by 3.2 percentage points to 9.5%.