KSE index ends on over 6-week high after policy rate cut

KARACHI: Karachi Stock Exchange (KSE) on Monday surged to a more than six-week high and a seven-month peak in volume after the central bank unexpectedly cut 150 basis points from its key policy rate over the weekend.

The State Bank of Pakistan cut its key policy rate to 12 percent, from 13.5 percent, for the next two months, citing a decline in inflation and government borrowing, and to spur economic growth.

The KSE benchmark 100-share index rose 2.01 percent, or 234.48 points, to end at 12,098.32, its highest close since August 17.

Turnover increased to 183 million shares, compared with 70.48 million shares traded on Friday.

Copyright Reuters, 2011