The Pakistan Stock Exchange (PSX) witnessed a bearish trend on Monday, with shares declining by 1,000 points as investors awaited the announcement of the monetary policy. This decline came shortly after the market opened, as the benchmark KSE-100 index surged to a record high of 73,300 points but quickly plummeted.
By 1:56pm, the index had dropped by 728.40 points, standing at 72,014.34 points, reflecting a 1% decrease from the previous close. Market analysts attributed this downturn to investors choosing to book profits following a 5% rally the previous week.
The uncertainty surrounding the State Bank of Pakistan (SBP) decision on interest rates also contributed to the cautious sentiment among investors. The SBP’s monetary policy committee (MPC) convened to discuss the key interest rate policy, which had remained at 22% for the past six policy meetings.
Tahir Abbas, head of research at Arif Habib Limited, noted that the market was undergoing a correction in anticipation of the monetary policy announcement. Surveys indicated a divided expectation, with a 50-50 split on predictions of a rate cut.
Awais Ashraf, director of research at Akseer Research, highlighted that disappointing results from Mari Petroleum and reduced cash payouts from the Hub Power Company (HUBC) added to the downward pressure on the index.
Shahab Farooq, director of research at Next Capital Limited, echoed these sentiments, mentioning that lower-than-expected cash payouts by HUBC, an index heavyweight, contributed to the negative trajectory of the KSE-100 Index.
