Pakistan’s benchmark index, the KSe-100, closed in red at 188,587.66, down 579.16 points (-0.31 per cent) from the previous close.

The total volume was 449.8 million shares at a value of Rs43.56 billion.

The market fell to its lowest point at 3:28pm PKT, hitting an intraday low of 188,268.38 points. This rally was on account of investors positioning for a further cut in the policy rate based on easing inflation, rising foreign exchange reserves, and a stable rupee.

After the markets closed, State Bank of Pakistan (SBP) maintained its key policy rate at 10.5 per cent on Monday during its Monetary Policy Committee (MPC) meeting.

Brokerage house Topline Securities noted that this “came as a surprise” as a majority of their participants were expecting a rate cut.