The Pakistan Stock Exchange (PSX) witnessed a significant decline on Monday as the benchmark KSE-100 index lost over 1,000 points primarily due to foreign selling ahead of the Monetary Policy Committee (MPC) meeting. According to the PSX website, the KSE-100 benchmark index lost 630.11 points or 0.99 per cent in the morning and further dipped by 1,039.34 points or 1.63pc by the end of the day’s trading session. This marked the highest day-on-day decline since December 26, 2023. Market experts attributed the downward spiral to factors such as foreign selling, lack of clarity on resolution of circular debt proposal, and uncertainty regarding the plans for circular debt settlement. Political uncertainty and the expectation of unchanged monetary policy and election uncertainty were also mentioned as contributing factors to the market losses. Despite the decline, analysts advised caution in trading and expected the market to consolidate at these levels.