Bears take over as PSX goes down more than 700 points

68

Karachi: The Pakistan Stock Exchange reacted negatively to the unanticipated rate hike by the State Bank and the benchmark KSE-100 index plunged over 700 points during the early day trading on Monday.

At around 10:35 am, the benchmark KSE-100 index was down 545 points, or 1.27%, to reach 42,391.38 points.

PSX

On Sunday, the State Bank’s Monetary Policy Committee (MPC) increased the key policy rate by 100 basis points, taking it to a 24-year high of 16%.

In a statement issued after the meeting of the MPC, the SBP said that the decision reflects the MPC’s view that inflationary pressures have proven to be stronger and more persistent than expected.

“This decision is aimed at ensuring that elevated inflation does not become entrenched and that risks to financial stability are contained, thus paving the way for higher growth on a more sustainable basis,” the MPC said.