PSX ends higher despite policy rate surprise

The KSE-100 index closed higher by 447.43 points, or 0.32 per cent, at 138,412.25 on Wednesday, following a volatile session driven by speculation over the central bank’s monetary policy decision. The index fluctuated between an intraday high of 139,018.88 and a low of 137,658.81. Early trading witnessed selling pressure from leveraged investors amid uncertainty over a potential interest rate cut. However, sentiment shifted after the State Bank of Pakistan (SBP) surprised the market by keeping the policy rate unchanged at 11pc in its latest Monetary Policy Committee (MPC) meeting — contrary to market expectations of a 50-100 basis point reduction. The announcement triggered renewed interest in the banking sector, with heavyweight stocks such as United Bank, Habib Bank, and Systems Ltd contributing a combined 481 points to the index.