KSE-100 Index Decline Due to Interest Rate Hike and Geopolitical Tensions

The KSE-100 index experienced a significant decline, closing at 166,408.22, down 2,004.01 points or 1.1%. This drop follows a brief period of optimism where the index peaked at 169,686.03, but selling pressure quickly reversed gains. The decline is attributed to a combination of factors, including a recent 1% interest rate hike by the State Bank of Pakistan and heightened geopolitical tensions surrounding the Strait of Hormuz, which have caused oil prices to surge to a one-month high. Investors are reacting cautiously to these developments, leading to broad-based selling across key sectors such as commercial banks and oil and gas exploration companies.