Overview
- After touching an intraday peak near 191,032 points on Jan. 26, the index reversed to close at 188,588 and finished the next session at about 188,203 as volatility persisted.
- The State Bank of Pakistan kept the policy rate unchanged at 10.5% and lowered the average cash reserve requirement to 5%, a move that added liquidity but did not prevent profit-taking.
- Markets had positioned for a 50–75 basis point cut, and business groups publicly pressed for deeper easing, leaving sentiment cautious once the expected cut did not materialize.
- Turnover remained heavy during the retracement, with Monday’s ready-market volume around 870 million shares (Rs57.2 billion) before easing on Tuesday.
- Brokerages cited futures rollover flows, sectoral pressure in cyclical names, and US–Iran risk as constraints on risk appetite, while banks showed relative resilience following the policy move.