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PSX at peak ahead of policy decision | The Express Tribune
KARACHI:
The Pakistan Stock Exchange (PSX) opened the week on Monday with renewed optimism and rose to a record high above 170k, reflecting the extension of bullish momentum from the previous week. Investors remained somewhat upbeat ahead of the monetary policy announcement later in the day, when the central bank unexpectedly cut its policy rate by 50 basis points.
The rally was largely driven by buying interest in energy stocks, alongside expectations of a reduction in the policy rate. The session saw wild swings as the KSE-100 index traded between the intra-day high of 171,002 and the low of 170,293, indicating active participation.
At close, the benchmark index recorded a notable growth of 876.82 points, or 0.52%, and settled at 170,741.35.
In its market wrap, KTrade Securities wrote that the PSX kicked off the week on a strong footing, extending the positive momentum seen in recent sessions. The KSE-100 index gained 877 points to close at 170,741, marking a new all-time high, as sustained buying interest kept the market firm throughout the day.
Sector-wise performance was led by oil & gas, technology and cement stocks. Pakistan Petroleum emerged as the largest contributor to the index’s advance, while Systems Limited, Maple Leaf Cement, National Bank, United Bank and Oil and Gas Development Company (OGDC) also made notable positive contributions, it said.
Market activity was healthy as the outlook remained constructive, supported by several positive developments, including the 50-basis-point rate cut to 10.50%, partial progress on settling energy-sector circular debt and renewed US investment commitment to the Reko Diq mining project, KTrade observed.
Arif Habib Ltd (AHL) Deputy Head of Trading Ali Najib remarked that after multiple unsuccessful attempts, the PSX finally managed to close above the key 170k level, with the KSE-100 index ending the session at 170,741, up 877 points.
He pointed out that trading opened on a strong note, driven by optimism surrounding the resolution of gas-sector circular debt. This development kept energy stocks, particularly Pakistan Petroleum, Sui Southern Gas Company (SSGC), Sui Northern Gas Pipelines Ltd, Mari Energies and OGDC, in the spotlight as they enjoyed strong buying interest during the early hours.
At one point, the benchmark index even crossed the 171k mark; however, profit-taking at higher levels trimmed some of the gains, Najib said. In a major move, the State Bank surprised markets by cutting the policy rate by 50 basis points to 10.5%, contrary to a Bloomberg survey where 40 out of 42 economists expected the rate to stay unchanged.
Pakistan Petroleum, Systems Ltd, Maple Leaf Cement, NBP and UBL collectively added 652 points to the index, while Hub Power, Fauji Fertiliser, Engro Fertilisers, Bank AL Habib and SSGC faced profit-taking, erasing 156 points, he added.
JS Global analyst Mubashir Anis Naviwala noted that stocks extended their bullish momentum as the KSE-100 closed at 170,741, up 877 points. The index traded volatile but stayed firm above the 170k psychological mark.
He mentioned that the intra-day range remained wide, showing active participation on both sides. Buying interest re-emerged after midday consolidation, and a late-session surge helped the index close near the day’s highs. “Market outlook remains positive while holding above the support level of 170k,” he said.
Overall trading volumes increased to 905.7 million shares compared to the previous tally of 873 million. The value of traded shares stood at Rs47.7 billion.
Shares of 486 companies were traded. Of these, 239 closed higher, 202 dropped, and 45 remained unchanged.
Pakistan International Bulk Terminal topped the volumes with trading in 123.3 million shares, gaining Rs1.56 to close at Rs17.19. It was followed by Hum Network with 39.7 million shares, rising Rs0.23 to close at Rs15.11 and Fast Cables with 36.3 million shares, higher by Rs1.77 to close at Rs26.24.
During the day, foreign investors bought shares worth a net Rs46.2 million, the National Clearing Company of Pakistan reported.
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Piyush Goyal termed the Budget “economically and fundamentally very strong”, and stated that it “reflects the aspirations of the youth of the country”.
Minister of Commerce and Industry Piyush Goyal. (File photo)
Union Minister Piyush Goyal on Sunday termed Budget 2026 “futuristic and holistic”, and stated that it “reflects the aspirations of the youth of the country and is forward-looking”.
Speaking exclusively to CNN-News18 on Budget 2026, presented by Finance Minister Nirmala Sitharaman, Goyal said, “This is a fabulous budget and it is very futuristic. The Budget 2026 has covered all sectors including technology, infrastructure, etc.”
“The technology sector has been given a thrust. The budget focuses on infrastructure. It is a holistic and forward-looking budget refecting future ready Bharat,” he said, adding, “The budget meets the aspirations of the youth and new India.”
Stating that the Budget is economically and fundamentally very strong, the Union Minister said, “Farmers, animal husbandry and labour-intensive sectors get a major push as this Budget focuses on investment, value addition and jobs.”
#Exclusive | “The Budget is economically and fundamentally very strong,”Preparing India for Viksit Bharat. Farmers, animal husbandry and labour-intensive sectors get a major push as the Budget focuses on investment, value addition and jobs.@Parikshitl in an exclusive… pic.twitter.com/tJr2SItcaW
— News18 (@CNNnews18) February 1, 2026
‘Budget 2026 Is Human-Centric’: PM Modi
Prime Minister Narendra Modi on Sunday said that the Union Budget 2026 is “human-centric and strengthens India’s foundation with path-breaking reforms.” The Prime Minister also described it as historic and a catalyst for accelerating the country’s reform trajectory and long-term growth.
Following the presentation of the Budget in Parliament, PM Modi said the proposals would energise the economy, empower citizens and give India’s youth fresh opportunities to scale new heights.
“This budget brings the dreams of the present to life and strengthens the foundation of India’s bright future. This budget is a strong foundation for our high-flying aspirations of a developed India by 2047,” he said.
Calling the government’s reform agenda a “Reform Express”, the Prime Minister added, “The reform express that India is riding today will gain new energy and new momentum from this budget.”
February 01, 2026, 19:01 IST
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Interest rates are widely expected to remain at 3.75% as Bank of England policymakers prioritise curbing above-target inflation while also monitoring economic growth, according to expert analysis.
The Bank’s Monetary Policy Committee (MPC) is anticipated to leave borrowing costs unchanged when it announces its latest decision on Thursday, marking its first interest rate setting meeting of the year.
This follows a rate cut delivered before Christmas, which was the fourth such reduction.
At the time, Governor Andrew Bailey noted that the UK had “passed the recent peak in inflation and it has continued to fall”, enabling the MPC to ease borrowing costs. However, he cautioned that any further cuts would be a “closer call”.
Since that decision, official data has revealed that inflation unexpectedly rebounded in December, rising for the first time in five months.
The Consumer Prices Index (CPI) inflation rate reached 3.4% for the month, an increase from 3.2% in November, with factors such as tobacco duties and airfares contributing to the upward pressure on prices.
Economists suggest this inflation uptick is likely to reinforce the MPC’s inclination to keep rates steady this month.
Philip Shaw, an analyst for Investec, stated: “The principal reason to hold off from easing again is that at 3.4% in December, inflation remains well above the 2% target.”
He added: “But with the stance of policy less restrictive than previously, there are greater risks that further easing is unwarranted.”
Shaw also highlighted other data points the MPC would consider, including gross domestic product (GDP), which saw a return to growth of 0.3% in November – a potentially encouraging sign for policymakers.
Matt Swannell, chief economic advisor to the EY ITEM Club, affirmed: “Keeping bank rate unchanged at 3.75% at next week’s meeting looks a near-certainty.”
He noted that while some MPC members who favoured a cut in December still have concerns about persistent wage growth and inflation, recent data has not been compelling enough to prompt back-to-back reductions.
Edward Allenby, senior economic advisor at Oxford Economics, forecasts the next rate cut to occur in April.
He explained: “The MPC will continue to face a delicate balancing act between supporting growth and preventing inflation from becoming entrenched, with forthcoming data on pay settlements likely to play a decisive role in shaping the next policy move.”
The Bank’s policymakers have consistently voiced concerns regarding the pace of wage increases in the UK, which can fuel overall inflation.
India’s budget focuses on infrastructure and defence spending and tax breaks for data-centre investments.
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