KSE-100 slides 715 points as investors await SBP rate call

Trading on the Pakistan Stock Exchange was under pressure on Monday, with the benchmark KSE-100 Index down 714.63 points, or 0.44%, at 161,660.24 by 12:24pm, according to figures carried by both The Express Tribune and Minute Mirror. The index had closed the previous session at 162,374.87.

The fall was broad rather than concentrated. Automobile assemblers, cement manufacturers, commercial banks, refineries, oil and gas exploration companies and oil marketing companies all drew selling, the two outlets reported.

The session opened cautiously. At 9:34am the index stood at 162,347.31, down 27.56 points or 0.02%, before extending its losses. It touched an intraday high of 162,487.82 and a low of 161,250.06. Trading volume was recorded at 53.42 million shares, with traded value of roughly Rs3.39 billion.

Both reports tied the decline to investor caution ahead of the State Bank of Pakistan's Monetary Policy Committee meeting, where the central bank was expected to announce its policy rate decision on Monday. The Express Tribune described the mood as anxiety over a policy rate hike; Minute Mirror reported concerns over a possible interest rate increase. Neither outlet reported the outcome of the committee's decision, and both accounts were filed while the market was still trading.

The reports cited persistent inflationary pressure, higher energy costs and uncertainty over their effect on business activity as the backdrop to the decision. A rise in borrowing costs would increase financing expenses for companies, weigh on private-sector credit demand and could delay investment plans, the outlets reported.

The KSE-100 has been volatile in recent sessions, and Monday's move extended losses after the index settled at 162,374.87 at the close of the previous session. Monday's decline, at 0.44%, was modest relative to the index level but broad in the sectors it touched, with banks and cement, two of the market's heaviest weights, among those under selling pressure.

The monetary policy announcement is expected later on Monday. The Express Tribune and Minute Mirror both framed the market's direction as dependent on whether the committee raises the policy rate, holds it, or signals a change in stance.