Karachi, March 11, 2025 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) declined by 178 points on Tuesday, reflecting investor concerns over the monetary policy stance maintained by the State Bank of Pakistan (SBP).
The KSE-100 index closed at 114,178 points, down from the previous day’s level of 114,356 points.
Market analysts at Topline Securities Limited noted that the KSE-100 index experienced a volatile session, marked by a tug-of-war between bullish and bearish forces. The market opened on a weak note, reacting negatively to the SBP’s decision to keep the policy rate unchanged at 12%, despite easing inflationary pressures. This move by the SBP disappointed investors, leading to an initial sharp decline that pushed the index down by 746 points at its lowest intraday level.
As the trading session progressed, the market witnessed a recovery, driven by renewed buying interest amid speculation about the resolution of the country’s circular debt crisis. Optimism surrounding this development helped the KSE-100 index recover from its earlier losses, with the index even reaching an intraday high of 129 points at one stage.
The late-session rebound was largely supported by key stocks, including PSO, PPL, OGDC, MEBL, and HUBC, which collectively added 425 points to the KSE-100 index. However, some heavyweight stocks, such as UBL, SRVI, FFC, and EFERT, exerted downward pressure, pulling the index down by 210 points.
Trading activity remained robust, with a total of 318 million shares changing hands, translating into a market turnover of Rs 22.8 billion. SSGC emerged as the volume leader, with 26 million shares traded.
Despite the KSE-100 index’s recovery in the latter half of the session, investor sentiment remains fragile due to policy uncertainties. Analysts suggest that the SBP’s stance on interest rates will continue to play a crucial role in shaping market direction. Moving forward, traders and investors will closely monitor SBP’s monetary policy adjustments, inflation trends, and macroeconomic indicators to gauge the market’s trajectory. With the KSE-100 index showing sensitivity to SBP decisions, future movements will depend on a combination of economic data and policy clarity.