The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) surged by 1,867.61 points on Monday, closing at a record high of 116,169.41 points, marking a 1.61 percent increase from the previous session. The market’s strong performance was fueled by investor optimism ahead of the central bank’s monetary policy review, which was scheduled for later in the day.

After the market closed, the State Bank of Pakistan (SBP) announced a 200 basis point cut in the key policy rate, bringing it down to 13 percent. This decision further validated market expectations and contributed to the bullish sentiment.

According to brokerage firm Topline Securities, the market maintained its upward momentum as investors anticipated the rate cut. The rally was further supported by significant buying activity from local institutions, with the index reaching an intraday high of 116,682 points.

Topline noted that the rise in the index was primarily driven by strong performances from key stocks, including MARI, FFC, PPL, OGDC, and HUBC, which collectively added 1,749 points to the index.

Trading activity also saw a significant boost, with 1,470,661,659 shares traded during the day, compared to 1,118,570,230 shares in the previous session. The total value of shares traded stood at Rs. 66.63 billion, up from Rs. 59.51 billion on the last trading day.

A total of 477 companies traded their shares on Monday, with 246 recording gains, 194 posting losses, and 37 remaining unchanged. The strong performance reflects growing investor confidence in the market, driven by expectations of favorable monetary policy and robust institutional participation.