Selling pressure wiped out early gains at the Pakistan Stock Exchange (PSX) on Monday, despite the benchmark KSE-100 briefly crossing the 191,000 level.
The market closed nearly 600 points lower, with the index settling at 188,587.66, down 579.16 points or 0.31%.
Broad-based selling was observed across key sectors including automobile assemblers, cement, fertilizer, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and refineries.
Last week, the PSX enjoyed a strong rally, with the KSE-100 reaching an all-time closing high of 189,166.83 points, a weekly gain of 4,068 points or 2.2%.
This momentum was driven by easing geopolitical tensions, renewed foreign investment interest, declining government bond yields, and growing expectations of further monetary easing.
Meanwhile, the State Bank of Pakistan is set to announce the new policy rate following today’s Monetary Policy Committee (MPC) meeting. In its previous session on December 15, 2025, the MPC surprised markets by cutting the policy rate by 50 basis points to 10.50%, citing inflation comfortably within the 5 to 7% target range.
