KSE-100 plunges over 1,200 points amid policy rate hike fear, rupee free fall

KARACHI – The Pakistan Stock Exchange (PSX) witnessed nosedive on Wednesday as KSE-100 index shed over 1200 points amid fears of policy rate hike and continuous rupee depreciation. 

During the intraday trading session, the benchmark also dropped by 1,747.63 points, or 3.78 percent, as traders were reacting to the interest hike rumours negatively. 

The KSE-100 Index closed at 45,002.41 after losing 1242.14 points or -2.69%. The highest level was recorded at 46,358.01 during the trading session. 

The index witnessed a decline of 3,032 points or -6.31% during August 2023 to close at 45,002 points.

Arif Habib Limited, a research firm, in its report on PSX performance said the month began with a bullish trend as KSE-100 crossed the 49,000 mark. However, the positive sentiments shifted as economic uncertainties emerged, with inflation rising to 28.3% on year on year basis, adding that concerns over escalating petroleum and potential gas prices revisions by the caretaker government also triggered negative sentiments.