In today’s intraday trading on Pakistan’s benchmark stock exchange, the KSE-100 index ended at 188,001.04 points, marking a decline of 586.62 points or 0.31 percent from its previous close of 188,587.66 points. The index experienced volatility throughout the session, initially peaking at an intraday high of 189,521.32 points but then dropping to a low of 187,918.79 points by mid-trading.
Trading volumes amounted to 141.88 million shares with a market value of Rs18.73 billion. The subdued performance was largely attributed to the State Bank of Pakistan’s decision to maintain its key policy rate at 10.5 percent, contrary to initial expectations for a reduction in this figure.
Industry leaders and traders were notably surprised by this announcement, which led to a lackluster trading day. Arif Habib Limited anticipated that the SBP would cut the monetary policy rate (MPC) by up to 75 basis points, pushing the policy rate towards 9.75 percent—a move expected to herald single-digit territory. However, this expectation was not met, dampening investor enthusiasm.
Atif Ikram Sheikh, President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), emphasized that the business community had consistently called for a substantial reduction in the policy rate by at least 350 basis points to reduce it below 7 percent. Such an adjustment was seen as essential to mitigate the industry’s current crisis, particularly concerning soaring energy tariffs and elevated borrowing costs.
While commercial banks collectively fared better with no single bank experiencing a decline across their listed shares, other sectors continued to struggle under the prevailing economic conditions. This underscores the broader challenges faced by the economy amidst ongoing price increases and mounting debt levels.