KSE100 index slides 639 points
The Pakistan Stock Exchange (PSX) is facing a bearish trend on Monday, the first trading day since the policy rate announcement on Friday.
The State Bank of Pakistan (SBP) increased the interest rate by 150 basis points to 8.75%. However, the announcement has not sit well with the market and the KSE100 index slid about 550 points (more than 1%) by 12pm, SAMAA TV‘s Rizwan Alam reported.
The slide continued and the market was trading at 45,850 after shedding 639 points (-1.38%) by 1:40pm.
The news about the agreement between Pakistan and the International Monetary Fund (IMF) also failed to prop the market, Alam said.
Last week, traders had expressed reservation on the interest rate hike fearing that belt-tightening will harm their business.
Major shares to decline on Monday included Shield Corporation limited, Tandlianwala Sugar Mills Limited, and TRG Pak. They were in the lower lock after declining 7.5%.
TRG Pak has come under pressure after its CEO Zia Chishti was accused of sexual assault by a former Affiniti employee. Chishti resigned from Affitini as CEO last week. The share price of TRG Pak has fallen to Rs96.
Analyst Raza Jafari told SAMAA Digital that the hike of 150 basis points in the interest rate was unexpected for investors and the market came under pressure. The bearish trend could continue for the next two or three days, he said.