PSX declines as policy rate remains unchanged

The Pakistan Stock Exchange (PSX) witnessed a bearish trend on Tuesday after the Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 12%, disappointing investors who had anticipated a significant rate cut of 500 basis points.

The benchmark KSE-100 index dropped over 400 points, settling at 113,952 points, as investor sentiment turned negative.

On Monday, the index had already closed lower at 114,356 points, shedding 42 points. Analysts believe that market participants were hoping for a major rate cut to boost economic activity, and the unchanged rate led to selling pressure across sectors.