Summary PSX fell over 1,000 points to 161,250 in early trading amid interest rate hike concerns, as the SBP prepares to announce its monetary policy, with a 50-basis-point increase expected.
KARACHI (Dunya News) - The Pakistan Stock Exchange (PSX) opened in negative territory on Monday amid concerns over a potential increase in interest rates.
During early trading session, the benchmark KSE-100 Index lost more than 1,000 points, pushing the benchmark index down to 161,250 points.
The latest decline follows a weak close in the previous trading session, when the KSE-100 Index shed 1,549 points to settle at 162,374 points.
Investor concerns over a possible interest rate hike have added to the uncertainty surrounding market performance, with the stock market continuing to face selling pressure.
The State Bank of Pakistan’s (SBP) Monetary Policy Committee is scheduled to meet today to review the country’s economic situation and inflation outlook before announcing its monetary policy for the upcoming period.
Economists and market analysts expect the central bank to raise the key policy rate by up to 50 basis points amid recent tensions in the Middle East and mounting pressure on the Pakistani rupee.
If implemented, the anticipated increase would push the policy rate from its current level of 11.5 per cent to as high as 12 per cent.
