Policy Rate and IMF Deal
This week, the PSX remained generally stable and in the green zone, in contrast to last week. The KSE100 Index added more than 300 points, closing above the 65k level at 65,151.
During the week, the Index reached a high above the 66k level but failed to maintain it. The last two days of the week KSE100 Index had negative closing.
The highlight of the week was the State Bank of Pakistan (SBP) holding its Monetary Policy Committee meeting on Monday evening. It maintained its policy rate at 22%, as widely expected. The market did not react negatively to this and even regained its bullish tone.
The market was generally feeling bullish about the IMF deal, so it took the unchanged rate in its stride. On Wednesday, the IMF announced reaching a staff-level agreement with Pakistan.
