PSX sheds 715 points as investors brace for policy rate decision

The KSE-100 was down 714.63 points, or 0.44%, at 161,660.24 by 12:24pm on Monday, as traders positioned themselves ahead of the State Bank of Pakistan’s policy announcement. The index had opened under pressure, reached 162,487.82 at its highest and slipped to 161,250.06 at its lowest, after ending the previous session at 162,374.87.

Trading covered 53.42 million shares worth about Rs3.39 billion, with selling reported across car makers, cement producers, banks, refineries and oil and gas businesses. The Express Tribune linked the cautious mood to concern that the Monetary Policy Committee could raise borrowing costs, while inflation and expensive energy were already weighing on business activity. Higher financing costs could also restrain private credit and investment, adding to worries about the economic recovery.