The index gains were 0.22 per cent on the current close. In intraday trade on Monday, bulls retained their control over the trade floor as shares at Pakistan Stock Exchange (PSX) surged more than 800 points.

The index in intraday trade increased 855.89 points, or 0.95 per cent, to stand at 90,849.85 points from the previous close of 89,993.96 points at 10:42am. At 12:13pm, the index crossed the 91,000 milestone.

Also read: Gold Prices dip in Pakistan & Globally: Discover the factors behind this trend!

On the previous trading day, the stock market had rallied as investors anticipated a major interest rate cut in the upcoming Monetary Policy Committee (MPC) meeting on November 4.

It is expected that the State Bank of Pakistan (SBP) will reduce its policy rate by 200 basis points in its upcoming meeting on November 4, marking the fourth consecutive cut since June, thanks to a decline in inflation, a low current account deficit and higher remittances.

Eighty-five per cent of market participants expected that the central bank would announce a minimum rate cut of 200 basis points, as per a survey conducted by Topline Securities.

 “We believe that the larger rate cut expectations in the upcoming monetary policy meetings are driven by the single-digit inflation reading of 6.9pc in Sept 2024,” the firm said, adding that that the inflation trajectory was expected to continue in October within a range of 6.5pc to 7.0pc.

Meanwhile, Pakistani rupee declined 04 paisa against the US dollar in the interbank trading and closed at Rs277.68 on Monday.

The local currency depreciated and closed at Rs277.68 as compared to the previous day’s closing of Rs 277.64, according to the Forex Association of Pakistan (FAP). The buying and selling rates of the dollar in the open market stood at Rs277.25 and Rs278.75 respectively, the association reported.