PSX closes with over 1,000 points loss

KARACHI: The Pakistan Stock Exchange (PSX) opened at Friday’s closing of 72,742.74 points after posting impressive rally for the better part of the previous week.

Minutes into trading, the benchmark KSE-100 index soared over 73,000 points, touching the highest of the day at 73,300.75 points. However, by 10 AM, the index had begun to lose the gains – a trend that continued until the day-end.

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Touching the lowest of the day at 71,602.94 points shortly before closing, the index posted negligible recovery to close at 71,695.03 points – 1047.71 points lower than the opening level.

Despite the steep decline, the energy and telecom sectors managed to close in green for the most part, while the cement and transportation sectors clocked in the steepest losses.

The fluctuations, and eventually the decline, in the index came on the back of the uncertainty fueled by the State Bank of Pakistan’s (SBP) likely announcement of the new monetary policy.

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While the industry players are advocating for lower interest rates, the recent statements by the central bank show that the focus on controlling inflation is still a significant factor in Monetary Policy Committee’s (MPC) decision making process.

There is also a possibility, aligning with market expectations, that the SBP would leave the interest rate unchanged.