Pakistan stocks tumble as SBP rate hike expectations, Middle East tensions weigh

The KSE-100 was down 630.01 points, or 0.39%, at 161,744.83 by 12:45 pm on Monday, after falling more than 1,000 points early in the session and reaching 161,250.06. Profit by Pakistan Today reported broad selling across automobile assemblers, cement, banks, energy exploration, oil marketing, power and refinery stocks.

Investors were waiting for the State Bank of Pakistan’s monetary policy announcement due Monday. Analysts cited in the report expected a 50-basis-point rate increase, while inflation concerns, external shocks and Middle East tensions added to uncertainty; the index had already lost 4,044.84 points, or 2.4%, in the previous week, extending its run of weekly declines to five weeks.

Global markets were also cautious, with major Asian indices lower or flat. Brent crude stood at $114.51 a barrel and US West Texas Intermediate at $101.04, both lower on Monday after oil prices had climbed close to six-month highs the previous week.