- The KSE-100 index closed at 113,568.50, down 533 points.
- Reached an intraday summit of 115,093, winning 990 points.
- Analysts say that the market has failed to maintain the rally rally.
The stock market ended in the red on Tuesday despite a good start to the session, while the profit has erased the early gains pulled by the unexpected drop in central bank rates.
The KSE-100 reference index closed at 113,568.50, down 533.73 points, or 0.47%, compared to the previous fence of 114 102.23.
During intra -day trade, the index climbed to an intrajournnal summit of 115,093.10, an increase of 990.87 points, or 0.87%.
The hollow of the session was recorded at 113,418.52, reflecting a drop of 683.71 points, or 0.6%.
“The market was unable to capitalize on the drop in surprise rates from yesterday due to taking profits. Banks are negatively affected due to the propagation of tightening, therefore, the profit taking has been observed,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
“With the approval of the IMF board of directors, the budget and the border crisis pending at stake, the market will remain cautious,” he added. said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
The scholarship had opened on a strong note, supported by the State Bank of Pakistan (SBP) delivering a lower interest rate than expected yesterday before the change of Momentum.
“The market is supported by the drop in the policy rate of 100 BPS of the SBP announced yesterday, reporting a resumption of the monetary easing that only a minority provided,” said Amreen Soorani, research manager at Al Meezan Investment.
“Coupled with the improvement of macroeconomic fundamentals and prudent directives of monetary policy before the SBP alongside strong entrances to Forex expected in the next two months, investors’ confidence seems to be restoring after turbulent April.”
The SBP has reduced the reference interest rate by 100 basic points to 11%, the highest decline since June 2024, while inflation pressures softened and the risks of American prices and regional tensions are looming.
The move attracted most of the analysts off guard, many of whom did not expect any change or a modest reduction of 50 base points. The policy rate is now at its lowest level in three years, which leads to cumulative discounts in the past 11 months to 1,100 base points.
Meanwhile, the PSX closed largely unchanged on Monday, the KSE-100 index falling from 11.7 points to settle at 114,102.23. The session had experienced heights of 114,552.21 and a minimum of 113,077.67 while investors awaited the clarity of the political decision of the Central Bank.