Cut in key policy rate pushes KSE up by 238pts

The Karachi Stock Market started the day with 300 points increase. But due to profit-taking, the KSE-100 index rose 2.01 percent, or 238 points, to end at 12,092 points, its highest close since August 17.Trade volume remained at 192.5 million shares which is 180 percent higher than Friday’s trading.At least share value of 194 firms recorded growth.The State Bank of Pakistan cut its benchmark rate by 150 basis points to 12 percent as it looks to kick start investment.The reduction was beyond expectations as the bank lowered the rate by 50 basis points in July, experts said.The cut in the interest rate on Saturday was phenomenal, which has boosted the market and thrilled investors, analyst Mohammad Sohail of Topline Securities told AFP. This cut shows the central banks focus is on economic growth, he said.The bank has, however, warned that fiscal weaknesses and shrinking foreign financial inflows are haunting macroeconomic stability in the country, which has been plagued by a severe energy crisis and weak law and order.