PSX continues bearish trend after SBP increases policy rate

The Pakistan Stock Exchange (PSX) remained bearish on Wednesday amid with the benchmark KSE-100 Index shedding 1,120.15 points (2.59 percent) to close at 44,366.86 points.

1/2 The MPC decided to raise the policy rate by 100 basis points to 9.75%, to counter inflationary pressures, address the current account deficit, and ensure that growth remains sustainable. https://t.co/hiSvVsk9w4

— SBP (@StateBank_Pak) December 14, 2021

the bearish trend was observed after the State Bank of Pakistan (SBP) has increased policy rate by 100 BPS to 9.75%.

On Tuesday, the MPC of SBP decided to raise the policy rate by 100 basis points to 9.75%, to counter inflationary pressures, address the current account deficit, and ensure that growth remains sustainable.

On Tuesday, the Pakistan Stock Exchange (PSX) remained bearish for the third day on Monday amid a low-volume session, with the benchmark KSE-100 Index shedding 519.41 points (-1.21 percent) to close at 42,876.37 points.

The market remained in the green zone only for a few minutes at the start of the session, and later succumbed to selling pressure and remained in the negative zone till end of the session, as the investors opted to square their positions and remain cautious, anticipating an aggressive interest rate hike on Tuesday.

The KSE-100 Index moved in a range of 671.93 points, showing an intraday high of 43,478.61 points and a low of 42,806.68 points.

Reporter Ayaz Rana