Stocks rally on euphoria over US trade deal

A trade agreement with the United States helped keep Pakistan stocks in bullish territory on Thursday, despite the central bank’s unexpected decision to maintain the policy rate. Investor confidence surged, driving the benchmark KSE-100 index back above the 139,000-mark on the back of value-hunting and strong macroeconomic cues. Topline Securities Ltd reported that the bulls dominated July, with the KSE-100 index rising 11pc month-on-month to a record close of 139,390 points. The rally was underpinned by the federal cabinet’s approval of Pakistan’s largest-ever financial restructuring plan, aimed at retiring Rs1.275tr in circular debt over six years. The State Bank of Pakistan’s decision to maintain interest rates further bolstered investor sentiment. Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that the market experienced sharp swings following the SBP’s status quo policy stance. The index climbed to an intraday high of 140,215 points — up 1,802 points or 1.30pc — before retreating to a low of 139,084 points. It ultimately settled at 139,390, posting a net gain of 978 points or 0.71pc.