The KSE-100 Index surged sharply on Monday, gaining 876 points as investor sentiment improved following a cut in the policy interest rate. The benchmark index closed higher as buying momentum returned across key sectors, particularly banking, energy and cement, which benefited from expectations of lower borrowing costs and improved economic activity.
Market analysts said the policy rate cut signaled easing monetary conditions, encouraging investors to re-enter equities after recent volatility. Improved liquidity, expectations of economic recovery and renewed confidence in fiscal management also contributed to the bullish trend at the Pakistan Stock Exchange.