The stock market ended in the red on Tuesday despite a strong start to the session, as profit-taking erased early gains driven by the central bank’s unexpected rate cut. The benchmark KSE-100 Index closed at 113,568.50, down 533.73 points, or 0.47%, from the previous close of 114,102.23. During intraday trade, the index climbed to an intraday high of 115,093.10, an increase of 990.87 points, or 0.87%. The session’s low was recorded at 113,418.52, reflecting a decline of 683.71 points, or 0.6%. “The market was unable to capitalise on yesterday’s surprise rate cut due to profit taking. The banks are impacted negatively due to the tightening spread, hence, profit taking was witnessed,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. “With the IMF board approval, budget and the pending border crisis in play, the market player will remain cautious,” he added. said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. The bourse had opened on a strong note, buoyed by the State Bank of Pakistan (SBP) delivering a larger-than-expected interest rate cut yesterday before the shift in momentum. “The market is buoyed by the SBP’s 100bps policy rate cut announced yesterday, signalling a resumption of monetary easing that only a minority anticipated,” said Amreen Soorani, Head of Research at Al Meezan Investment.