KARACHI: The State Bank of Pakistan (SBP) unexpectedly increased the interest rate to 16% on Friday while the market was closed, which is the highest level since 1999. As a result, the Pakistan Stock Exchange (PSX) took a beating at the opening bell on Monday.
As soon as the trading week began, the KSE-100 index, which serves as a benchmark, dropped 707 points. At 9:39 a.m., the market stood at 42,229 points. It ended Friday’s session with a closing of 42,936.73 points.
The move by SBP to raise interest rates was cited as a major contributor to the decline in the KSE-100 index by analyst Samiullah Tariq.
“The market didn’t anticipate a rate increase. Because of this, it is reacting “The Pakistan-Kuwait Investment Company’s head of research told The News this.
The KSE-100 index fell at the opening bell today since the markets were closed at the time the verdict was released.