PSX extends losses as investors brace for SBP rate decision

The Pakistan Stock Exchange (PSX) remained under pressure on Monday as concerns over a possible interest rate hike by the State Bank of

KARACHI: The Pakistan Stock Exchange (PSX) remained under pressure on Monday as concerns over a possible interest rate hike by the State Bank of Pakistan (SBP) ahead of its monetary policy announcement weakened investor sentiment.

The benchmark KSE-100 Index fell 714.63 points, or 0.44%, to 161,660.24 by 12:24pm, as selling continued across major sectors.

Trading opened on a cautious note, with the index slipping to 162,347.31, down 27.56 points, or 0.02%, at 9:34am. During the session, it reached an intraday high of 162,487.82 and a low of 161,250.06. The index had settled at 162,374.87 in the previous session.

Market activity recorded a trading volume of 53.42 million shares, with the value of traded shares reaching approximately Rs3.39 billion.

Automobile assemblers, cement manufacturers, commercial banks, refineries, oil and gas exploration companies, and oil marketing companies were among the sectors facing significant selling pressure.

Investors remained cautious ahead of the SBP’s Monetary Policy Committee meeting, where the central bank was expected to announce its policy rate decision. Persistent inflation, rising energy costs and uncertainty over the economic outlook have added to concerns about the future direction of monetary policy.

A possible increase in interest rates could push up borrowing costs for businesses, discourage private-sector lending and delay investment plans. Higher financing expenses could also put additional pressure on corporate profitability and economic activity.

The market’s decline reflected investor concerns over the potential impact of tighter monetary policy at a time when businesses and investors are already dealing with elevated operating costs and broader economic uncertainty.