Stocks down 1,048 points on rate uncertainty

After briefly hitting a new all-time high above the 73,000 level in early trading on Monday, the stock market failed to extend an overnight bull run and closed in the red amid uncertainty about a rate cut ahead of the monetary policy announcement. Ahsan Mehanti of Arif Habib Corporation said the market witnessed an across-the-board selling spree on expectations for prudent SBP monetary policy with risks ahead to resolve circular debt crises, reforms on tax rates, fiscal consolidation and geopolitical noise. He said institutional profit-taking in selected overbought stocks and likely structural reforms for the IMF’s new programme to end subsidies in the energy, fertiliser, and gas sectors also contributed to bearish sentiment. Topline Securities Ltd said equities began the week on a mixed note ahead of two key events scheduled later in the day: a monetary policy review and the IMF’s board meeting to approve the last tranche under the $3bn Stand-By Arrangement.