Business
PSX loses over 1,000 points amid interest rate hike concerns
The Pakistan Stock Exchange (PSX) began down on Monday as investors feared a possible hike in interest rates.
The benchmark KSE-100 Index fell almost 1,000 points to 161,250 points in early trade.
This latest fall followed a dismal close in the previous trading session when the KSE-100 Index lost 1,549 points to settle at 162,374 points.
Selling pressure remains in the stock market as investors fret about a likely interest rate hike, adding to uncertainty over how the market will perform.
The State Bank of Pakistan (SBP) Monetary Policy Committee will convene today to evaluate the country’s economic status and inflation prospects before declaring its monetary policy for the forthcoming quarter.
Amid recent tensions in the Middle East and growing pressure on the Pakistani rupee, economists and market watchers expect the central bank to hike the key policy rate by as much as 50 basis points.
The policy rate will go up to as high as 12 per cent from the present level of 11.5 per cent if the expected hike is executed.