Pakistan Stock Exchange (PSX) fell on Tuesday as investors opted to lock in profits ahead of the State Bank of Pakistan’s (SBP) upcoming monetary policy announcement, scheduled for Wednesday (tomorrow).
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 137,964 points down 1,415.24 points from the previous close of 139,380.05. During the session, the index climbed to an intraday high of 140,331.01, gaining 950.96 points before sliding to a low of 137,636.37, reflecting a drop of 1,743.68 points.
Stock market experts claimed that profit taking seemed to be setting in at 140,000, where some investors are optimistic about another rate cut, while some are taking a cautious stance before the monetary policy announcement tomorrow. The uncertainty will end after tomorrow's policy.
The Monetary Policy Committee (MPC) is scheduled to meet on July 30 to set the benchmark interest rate. Analysts are divided on whether the SBP will initiate a fresh rate cut amid falling inflation and a stable exchange rate.
Reporter: Kawish Memon