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Bears continued to dominate the trade floor on Wednesday at the Pakistan Stock Exchange (PSX) as shares declined by nearly 3,800 points, two days after the State Bank of Pakistan (SBP) cautiously eased the interest rate to 13 per cent.
The benchmark KSE-100 index declined by 3,835.48 points, or 3.34pc, to stand at 111,025.20 points from the previous close of 114,860.68 points at 3:27pm.
Finally, the index closed at 111,070.29, down by 3,790.39 or 3.3pc, from the last close.
On Monday, SBP had reiterated that core inflation, which stood at 9.7pc, was “proving to be sticky, whereas inflation expectations of consumers and businesses remain volatile”, deciding on a cautious key interest rate cut of 200bps amid demands of a major rate cut.
Expectations for the rate cut varied widely between financial experts and the trade and industry sectors.
While businesses demanded a reduction of 400 to 500bps to spur economic growth, financial analysts had predicted a more conservative cut of 200 to 300bps.
