PSX turns bullish on interest rate cut, IMF bailout hope

Bulls returned to the Pakistan Stock Market (PSX) on Friday – a day after the State Bank’s Monetary Policy Committee (MPC) slashed interest rate by 2pc and amid hopes of approval of IMF bailout package.
The KSE-100 index saw a steep rise in early morning trade on the last working day of the current business week as it reached 79,907 points with the addition of 889 points.
On Thursday, the International Monetary Fund (IMF) confirmed that its board would meet on Sept 25 to discuss the new $7 billion EFF (Extended Fund Facility) for Pakistan.
Moreover, the 2pc or 200 basis points (bps) cut in interest rate by the MPC enhanced the confidence of investors. After the cut, the interest rate has come down to 17.5pc.
The PSX turned bullish on Thursday after a crash a day earlier and the index closed at 79,017 points after an increase of 365 points.
Meanwhile, Pak rupee strengthened against the US dollar in the interbank market.
The greenback depreciated by 10 paisas to 278.34.