KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gained 706 points at the opening of the market on Wednesday.

The index, however, lost some points and was trading 43,964 points at 09.45am. The market closed at 43,246 points a day earlier.

The market made a gain despite a policy rate increase by the State Bank of Pakistan (SBP) a day earlier.

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The SBP raised the policy rate by 100 basis points, taking it to 9.75 per cent. The decision to keep monetary policy broadly unchanged in near term is expected to bring some stability to the market.

Going forward, cyclical stocks are expected to perform after near term clarity in the policy rates.

KIBOR rates are also expected to come down as SBP took note of the recent increase in secondary market yields and considers the increase unwarranted.