Stock market shows recovery after yesterday’s steep decline

KARACHI: Yesterday the Pakistan Stock Exchange (PSX) closed with over 1,000 points decline, after showing rally earlier in the day. The uncertainty seen in the index yesterday could be partially attributed to the expectations of the new policy rate announcement by the central bank.

PSX closes with over 1,000 points loss

The State Bank of Pakistan (SBP) announced to keep the interest rate unchanged at 22 per cent for the next two months. This marks the sixth time the SBP has maintained the interest rate. Inflation is decreasing, and it is expected to reduce further in the future, the SBP said.

Yesterday (Monday), PSX opened at Friday’s closing of 72,742.74 points after posting impressive rally for the better part of the previous week. Today (Tuesday), the index opened at 71,695.03 points and quickly posted 151 points gain, hovering around 71,846.65 points at 10 AM. The trend has been of steep fluctuations today as well, but the index is expected to stabilize towards the second half of the trading day.

Around 10 AM, this is what the index looked like: