Selling pressure continued at the Pakistan Stock Exchange (PSX) on Monday. Investors stayed cautious ahead of the Monetary Policy Committee (MPC) meeting expected later today. As a result, the benchmark KSE-100 Index dropped over 800 points during early trading hours.
At 9:35 a.m., the index stood at 162,488.20, showing a fall of 815.93 points, or 0.50%. This early dip reflected investor uncertainty about the upcoming MPC decision.
Market Sentiment Turns Cautious
The decline was broad-based. Almost every key sector, including cement, banks, fertiliser, oil, and energy, faced selling pressure. Major stocks like HUBCO, ARL, MARI, OGDC, PPL, POL, PSO, HBL, MCB, and MEBL traded in the red.
The State Bank of Pakistan’s MPC is meeting today to discuss economic conditions and decide on the policy rate. Investors are waiting to see whether the central bank will maintain, cut, or increase rates.
Last week, the PSX ended on a dull note. Early optimism about easing geopolitical tensions faded quickly. Profit taking, weak banking results, and concerns over the futures rollover week weighed heavily on sentiment. The KSE-100 Index lost 0.3% week on week, closing at 163,304 points.
Global Markets Show Strength
In contrast, global markets had a strong start to the week. Asian stocks surged, and the dollar weakened as trade optimism between China and the United States improved investor confidence.
Top economic officials from both countries met on Sunday to outline a possible trade deal. The agreement could ease American tariffs and Chinese export restrictions. This progress lifted regional markets, with South Korea’s KOSPI and Japan’s Nikkei both gaining over 2%. Meanwhile, MSCI’s Asia-Pacific index rose 1.3%.
However, local investors remained focused on domestic challenges. The MPC’s decision will likely set the tone for upcoming sessions at the PSX.
Pakistan Stocks Dip Ahead of Key MPC Decision
