The Pakistan Stock Exchange (PSX) witnessed a subdued trading session on Monday as investors remained cautious ahead of the highly anticipated monetary policy announcement by the State Bank of Pakistan (SBP).

The benchmark KSE-100 Index opened on a dull note and continued to trade in a narrow range, reflecting a clear wait-and-see approach across the board. As of the filing of this report, the index was hovering at 169,953.80, down by 718.24 points (-0.42%) at 1pm, indicating persistent selling pressure amid limited participation.

The muted performance underscored investor caution, as participants refrained from building fresh positions ahead of clarity on the interest rate outlook. Uncertainty surrounding the monetary policy stance — particularly the direction of interest rates and its implications for inflation and economic growth — kept sentiment fragile throughout the session.

Also Read: PSX down 2% on geopolitical, power crisis

Intra-day movement remained range-bound, with the market touching a high of 171,306.61 and a low of 169,268.33. Overall activity stayed moderate, with total volume recorded at 197.63 million shares, while traded value stood at Rs13.51 billion.

“Investors remain on the sidelines, awaiting clarity on the upcoming Monetary Policy Statement and further developments in the ongoing US–Iran conflict,” Mohammed Awais Ashraf told The Express Tribune.

Going forward, market direction is likely to be dictated by the policy decision and forward guidance from the central bank, which could either revive investor confidence or prolong the ongoing cautious trend.