PSU rebounded 1,422 points on broad‑based buying after SBP held policy rate at 11.5%
The Pakistan Stock Exchange jumped 1,422 points as investors returned to major sectors following the State Bank of Pakistan’s decision to keep the policy rate unchanged at 11.5%, restoring market confidence.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Broad sector rally after SBP rate hold lifts confidence – Buy bias on most sectors.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- BanksPositively affected
- Oil & GasPositively affected
- CementPositively affected
- PowerPositively affected
- InsurancePositively affected
- SteelPositively affected
Companies
Mentions in This Briefing
Sectors: Banks, Oil & Gas, Cement, Power, Insurance, Steel — Positive · Buy bias. PSX tickers: MEBL, MCB, UBL, HBL, BAHL, FABL. Broad sector rally after SBP rate hold lifts confidence – Buy bias on most sectors.
Full Story
Open on Express Tribune## Market rally
The Pakistan Stock Exchange (PSX) closed higher by 1,422 points, signaling a strong rebound after a period of subdued activity. The gain was driven by broad‑based buying across most listed sectors, with the index recovering from earlier weakness.
## Central bank decision
The State Bank of Pakistan (SBP) announced on Tuesday that it will hold the policy rate steady at 11.5% for the time being. The decision was welcomed by market participants, who view the unchanged rate as a sign that inflation pressures are being managed without further tightening.
## Investor sentiment
Analysts said the rate hold restored confidence among both domestic and foreign investors, prompting them to re‑enter equities that had been under pressure. The buying was not limited to a single sector; banks, oil & gas, cement, power and other key industries all saw increased demand.
## Sector performance
- Banks: Shares in major banks posted modest gains as the outlook for credit growth improved. - Oil & Gas: Energy stocks rallied on expectations of stable financing costs. - Cement & Construction: Builders’ equities benefited from renewed optimism about infrastructure spending. - Power & Utilities: The sector saw a lift as investors anticipate steadier cost of capital.
## Outlook
With the policy rate on hold, market participants expect the PSX to maintain its upward trajectory, provided inflation remains contained and external risks stay limited. The broad participation suggests a healthier risk appetite among investors.
## Analyst view
Market analysts are recommending a cautious buy stance on the broader market, highlighting the potential for continued upside if monetary policy remains accommodative and macro‑economic fundamentals stay on track.