Karachi, August 30, 2023 – Pakistan stocks took a hit on Wednesday as rumors of an imminent interest rate hike by the central bank swirled, causing the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) to plummet by 526 points.
This decline pushed the index from its previous day’s closing of 46,170 points down to 46,244 points.
READ MORE: KSE-100 Index Declines by 708 Points in Bearish Trading Session
Analysts at Ismail Iqbal Securities attributed the sharp drop in equity prices to the circulating rumors of an emergent Monetary Policy Committee (MPC) meeting and the market’s anticipation of a potential interest rate hike. The uncertainty surrounding these factors led to a decrease in trading volumes, with only 200 million shares changing hands, compared to 216 million shares in the previous session.
READ MORE: Pakistan Equities Slide by 193 Points Amid Declining Market Participation
By the close of trading today, the KSE-100 index had experienced a loss of 526 points, marking a 1.12 percent decrease from the previous day’s level. Notably, several key sectors bore the brunt of the market’s decline, with power generation and distribution, oil and gas exploration companies, as well as technology and communication sectors collectively shedding 245 points from the index.
READ MORE: Corporate Results Expected to Drive Pakistan Stocks in the Coming Week
Investors and market participants are now closely monitoring developments within the central bank and the impending MPC meeting for any signals of a potential interest rate hike. The uncertainty in the market reflects the delicate balance between economic stability and inflation control that policymakers are currently facing in Pakistan.
READ MORE: Pakistan Stocks Witness Decline of 80 Points in Tight Trading Range
