Monday brought a significant dose of market volatility to the Pakistan Stock Exchange, ultimately ending in a major decline for the PSX-100 index.

The index experienced a classic rollercoaster day, starting strong and crossing a high of 163,570 points. However, the initial optimism quickly fizzled, and selling pressure intensified, driving the index to a low of 161,766 before the day was out.

By the closing bell, the benchmark PSX-100 index settled at 162,163, representing a substantial drop of approximately 1,140 points from Friday’s close of 163,304. This notable points difference underscores the severity of the market correction witnessed.

According to financial experts, the dramatic swing and subsequent fall can be pinned on a widespread “cautious wait” strategy adopted by investors. The market is currently focused on the approaching decision regarding the country’s interest rate. This uncertainty prompted investors to emphasize caution, moving their capital defensively to mitigate risk related to the possible effects of the central bank’s next monetary policy announcement, which in turn fueled the day’s sharp downward trend.