Summary Pakistan Stock Exchange fell over 1,000 points to 168,171 as US-Iran tensions and a 100bps SBP rate hike to 11.5% spurred caution amid rising inflation and global energy risks
KARACHI (Dunya News) – The negative trend in the Pakistan Stock Exchange (PSX) continued on the second day of the trading week amid ongoing geopolitical tensions and surge in the policy rate.
During the early trading, the KSE-100 index dropped over 1,000 points to reach 168,171 points compared to previous close of 169,497.35.
Market analysts said investors remain cautious as geopolitical tensions continue to influence trading sentiment.
A day earlier, the State Bank of Pakistan increased the policy rate by 100 basis points to 11.50 percent in view of conflict in the Middle East and its subsequent implications on macroeconomic outlook as well as increasing inflationary expectations.
The Monetary Policy Committee (MPC), in a meeting here at SBP reviewed the geopolitical scenario and key developments, and decided to increase the policy rate to preserve macroeconomic stability, which is necessary for achieving sustainable economic growth, the Monetary Policy Statement issued by the central bank stated.
The Committee noted the risks to the macroeconomic outlook and the uncertainty arising from the elongated Middle East conflict, particularly the higher global energy prices, freight charges and insurance premiums.
