PSX ignores rate cut positivity

The Pakistan Stock Exchange (PSX) closed in negative territory on Tuesday as investor sentiment weakened despite a policy rate cut by the State Bank of Pakistan (SBP). The move, aimed at easing monetary conditions, failed to satisfy market expectations for a deeper reduction, especially in light of rising geopolitical tensions and global uncertainty. The index opened on a strong note, however, the rally proved short-lived as markets reversed course following mounting concerns over India-Pakistan tensions and international risks tied to trade tariffs and regional instability. Investor caution was further exacerbated by a statement from Moody's, which warned that sustained political tensions between Pakistan and India could undermine the country's economic stability.