The Pakistan Stock Exchange recovered from its morning sell-off to close higher on Monday, with the benchmark KSE-100 index settling at 163,038.46, up 663.59 points or 0.41%. The index had fallen to an intraday low of 161,250.06 points in early trade before late-session buying pushed it above 163,000, near its intraday high of 163,477.08. The turnaround came after the State Bank’s decision to raise the policy rate to 12%, a move most market participants had expected. The index had already fallen 4,044.84 points, or 2.4%, over the previous week to close at 162,374.84, its fifth consecutive weekly decline, as surging oil prices and geopolitical tension weighed on sentiment. Monday’s recovery was narrow, however: 166 shares rose while 298 fell, showing that a few heavyweights carried the index. For investors, the session underlines how quickly sentiment can turn on a single policy announcement, even when the broader market remains fragile. Sources: Business Recorder, PSX market data. Written in our own words for information only.