The State Bank of Pakistan announced Monday that interest rate will remain unchanged at 12.5 percent for near term.
Despite signs of modest recovery, the State Bank policy statement was skeptical because the economy lacks the necessary infrastructure and sufficient macroeconomic stability to build on the momentum.
Policy statement which sent Pakistan’s leading market, Karachi Stock Exchange running for cover said that the worsening power crisis, and fiscal weaknesses, continue to impede sustainable recovery and comprehensive macroeconomic stability.
KSE-100 index plummeted from 9770 to 9,687 at the end of the session, shedding 183 points.
Overall trading remained on the lower side with only 79 million shares traded in the day. In the first session traders stayed on the selling spree avoiding buying that brought the index down to more than 150 points.
Today’s trading activity displays traders unease with the anticipated amendments in the post budget-trading pattern.
Traders dealt with the situation by readjusting their equity portfolios in accordance with the prescribed limits while the possible buyers holding back to trim down their holdings at available rates.
Trading activity is expected to remain low in the next session.