The Pakistan Stock Exchange (PSX) closed lower on Monday as investors stayed cautious ahead of the State Bank of Pakistan’s monetary policy decision. The benchmark KSE-100 Index dropped 718 points amid weak sentiment and limited fresh buying interest. Market activity reflected uncertainty over the future interest rate direction.
The KSE-100 Index traded in a narrow range throughout the session, showing a clear wait-and-see approach by investors. It touched an intra-day high of 171,306 points and a low of 169,268 points. Trading volumes remained moderate as participants avoided risk-taking ahead of policy clarity.
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Market analysts said uncertainty over inflation trends and economic growth kept investor sentiment fragile. Many participants remained on the sidelines, expecting the central bank to signal its next policy direction. Concerns over external geopolitical tensions also added to market caution.
The overall turnover stood at 197.63 million shares, while traded value reached Rs13.51 billion. The subdued performance highlighted the lack of strong triggers in the market. Investors are now closely watching the SBP announcement for direction.
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Going forward, market direction is expected to depend on the monetary policy decision and the central bank’s forward guidance. A clear stance on interest rates could restore confidence or prolong the current cautious trend.