The Pakistan Stock Exchange ended its trading session on Friday with a bearish trend, where the benchmark KSE 100 Index recorded a significant decline. Investors adopted a cautious attitude in view of the monetary policy decision expected next week and the global economic conditions.
The index closed at 162,374.88 points, down 1,549.44 points, or 0.95 percent, at the close of trading. The index had closed at 163,924.32 points in the previous trading session.
One of the main reasons for the pressure on the market is the uncertainty surrounding the upcoming interest rate decision. The State Bank of Pakistan’s monetary policy meeting is scheduled for October 26, the decision of which is being viewed by investors in the context of business costs, loans and economic activity.
On the other hand, tensions in the Middle East and the increase in crude oil prices in the global market have also increased investor concerns. Due to Pakistan’s import requirements, the continuous increase in oil prices may put pressure on inflation and external payments. However, these factors cannot be considered the sole reason for the decline in the market.
According to the data available from the Pakistan Stock Exchange, about 398.9 million shares were traded in the ready market, worth more than Rs 18.2 billion.
The decline also reduced the total market capitalisation to around Rs 18.014 trillion, from Rs 18.173 trillion in the previous session
Investors will be focusing on the State Bank of Pakistan’s decision, global crude oil prices and the changing situation in the region in the coming trading sessions. The impact of these factors could be important for the market direction and investor confidence.
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