Rate cut fails to snap gloomy trend on PSX

The Pakistan Stock Exchange (PSX) on Tuesday showed a strong upward movement in early trading following another cut in the interest rate. However, towards the end of the session, widespread selling pressure pushed the KSE 100 index into the red, extending overnight losses. Investors’ sentiments remained bearish due to ongoing border tensions. Ahsan Mehanti from Arif Habib Corporation stated that the market closed lower due to the State Bank of Pakistan’s cautious approach to monetary policy easing amid ongoing tensions with India and global uncertainties related to trade tariffs and geopolitical risks. However, the trade and industry leaders insisted that the cut was insufficient to stimulate economic activity. Moody’s caution over sustained Pak-India tensions to derail economic stability, warning on external financing risks amid the Kashmir crisis led to a bearish close at the PSX.