At 12:24pm, the benchmark index stood at 161,660.24 points, down 714.63 points, or 0.44%, amid broad-based selling across major sectors.
Investor sentiment remained fragile as market participants assessed the possibility of an interest rate increase by the State Bank of Pakistan (SBP) at its Monetary Policy Committee (MPC) meeting.
KSE-100 Index Extends Decline
Trading began on a cautious note, with the KSE-100 Index falling to 162,347.31 points at 9:34am, down 27.56 points, or 0.02%.
During the session, the index reached an intraday high of 162,487.82 points before dropping to a low of 161,250.06 points.
The benchmark had closed at 162,374.87 points in the previous trading session.
Trading volume reached 53.42 million shares, while the value of shares traded stood at approximately Rs3.39 billion by the time of reporting.
Selling Pressure Spreads Across Major Sectors
Selling was reported across several key sectors, including automobile assemblers, cement manufacturers, commercial banks, refineries, oil and gas exploration companies, and oil marketing companies.
The widespread decline reflected investors’ cautious approach ahead of the central bank’s policy decision, with uncertainty over borrowing costs weighing on market sentiment.
PSX Plunges Over 1,400 Points as Selling Pressure Mounts
Investors are closely monitoring the monetary policy announcement for signals about the future direction of interest rates and the broader economic outlook.
Inflation and Energy Costs Add to Concerns
The upcoming policy decision comes amid persistent inflationary pressures and elevated energy costs, which continue to raise concerns about business activity and economic growth.
An increase in the policy rate could raise borrowing costs for businesses, increase financing expenses and discourage private-sector credit demand. Higher interest rates could also weigh on investment and limit the pace of economic recovery.
Market participants are therefore assessing how the SBP will balance inflation control against the need to support economic activity.
The direction of the stock market in the coming sessions will depend partly on the central bank’s decision and its assessment of inflation, economic growth and the outlook for borrowing costs.
