The negative trend in the Pakistan Stock Exchange (PSX) continued during the second day of the trading week on Tuesday amid ongoing geopolitical tensions and a surge in the policy rate, reported 24NewsHD TV channel.
At the end of business, the PSX’s benchmark KSE-100 index dropped by 1,085.12 points to reach 168,412.23 points or minus 0.64%.
Market analysts said investors remained cautious as geopolitical tensions continue to influence trading sentiment.
It is pertinent to mention here that a day earlier, the State Bank of Pakistan increased the policy rate by 100 basis points to 11.50 percent in view of the 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.