Buying momentum persisted at the Pakistan Stock Exchange (PSX) with the benchmark KSE-100 Index gaining over 450 points during intra-day trading on Tuesday, following the State Bank of Pakistan’s (SBP) decision to reduce the key rate by 250 basis points (bps).

At 3:30pm, the benchmark index was hovering at 92,406.10, a gain of 468.10 points or 0.51%.

Buying was led by index-heavy energy and cement sectors, with stocks of OGDC, PPL, HUBCO, PSO, SSGC and PRL traded in the green territory.

On Monday, the Monetary Policy Committee (MPC) of the central bank cut the key interest rate by 250bps, taking it from 17.5% to 15% after a fourth successive round of monetary easing that began in June 2024.

“The Committee noted inflation has declined faster than expected and has reached close to its medium-term target range in October.”

The MPC observed that inflation pressures are subsiding due to a decline in food inflation, favourable global trends in oil and absence of anticipation of adjustments in gas prices.

The 250bps rate cut exceeded analyst and investor expectations, who had projected a decline of 200bps.

On Monday, the PSX continued its merry run as its benchmark index closed 1.2% higher at 91,938.01, up by 1,078.15 points, ahead of the monetary policy announcement.

Globally, stock markets moved sideways and an uneasy calm settled over currencies and bonds as investors waited for the United States to choose a new leader with polls showing the contest on a knife edge.

Oil held sharp overnight gains on delays to producers’ plans for increased output, leaving benchmark Brent crude futures at $75.08 a barrel after a 3% rise on Monday.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat.

Tokyo’s Nikkei returned from a holiday and rose 1.3% in morning trade.

S&P 500 futures ticked 0.1% higher.

The dollar, which had eased overnight as traders made final adjustments to positions, bought 152.35 yen and traded at $1.0875 per euro.

This is an intra-day update