PSX remains subdued ahead of SBP monetary policy decision

The Pakistan Stock Exchange (PSX) witnessed a subdued trading session on Monday as investors remained cautious ahead of the upcoming monetary policy announcement by the State Bank of Pakistan (SBP).

The benchmark KSE-100 Index opened on a weak note and traded within a narrow range throughout the day, reflecting a clear wait-and-see approach from market participants. At around 1pm, the index was recorded at 169,953.80, showing a decline of 718.24 points or 0.42%.

Market sentiment remained fragile as investors avoided taking fresh positions due to uncertainty over the central bank’s expected interest rate decision and its potential impact on inflation and economic growth. Analysts said the lack of clarity kept overall trading activity muted.

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During intra-day trading, the index touched a high of 171,306.61 and a low of 169,268.33, indicating limited volatility but continued pressure on equities. Total trading volume stood at 197.63 million shares, while traded value was reported at Rs13.51 billion.

Market experts noted that investors are closely watching both domestic and global developments, including monetary policy signals and geopolitical tensions, particularly the ongoing US–Iran situation, which is also affecting broader sentiment.

According to analysts, the market is likely to remain directionless until the SBP announces its monetary policy stance. Any decision on interest rates will play a key role in shaping investor confidence and determining short-term market direction.

They added that a clear policy signal could either revive buying interest in the market or extend the current cautious trend as investors wait for macroeconomic stability.