The Pakistan Stock Exchange (PSX) faced a bearish onslaught on Monday, with shares experiencing a sharp decline of 500 points during intraday trading. The market, which initially surged past the 73,000 mark to reach a record high of 73,300 shortly after the opening bell, witnessed a sudden reversal in momentum.
By midday, the index had plummeted by 506.70 points, representing a decrease of 0.7 per cent, settling at 72,236.04 points from the previous close of 72,742.74. The sudden downturn sent ripples through the trading floor, prompting investors to reassess their positions amidst the prevailing market volatility.
Analysts attribute the downward trend to a combination of factors, including uncertainty surrounding global economic conditions and anticipation regarding the State Bank of Pakistan’s (SBP) monetary policy committee (MPC) meeting scheduled for the day.
The SBP’s MPC convenes to deliberate on crucial decisions pertaining to the country’s key interest rate policy. Last month, the committee opted to maintain the status quo, retaining the key policy rate at 22 percent for the sixth consecutive policy meeting.
Investors are closely monitoring the outcome of today’s MPC meeting, with expectations running high for insights into the central bank’s strategy amidst ongoing economic challenges and inflationary pressures.
The bearish momentum gripping the PSX reflects the cautious sentiment prevailing in the market as investors await clarity on monetary policy direction and seek to navigate the evolving economic landscape.