KSE-100 manages to sustain 46,000-point level

The Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index finished above the 46,000 level after dropping to an intra-day low 45,729, ending 84 points negative as sentiment continued to remain bearish on Thursday.

Investors have exercised caution ever since the central bank preponed its monetary policy announcement. The SBP said the meeting has been brought forward in light of recent unforeseen developments that have affected the outlook for inflation and the balance of payments, and to help reduce the uncertainty about monetary settings prevailing in the market.

SBP prepones monetary policy announcement, will now hold it on November 19

The change in schedule added to investor worry who were now convinced of a rate-hike.

At close on Thursday, the KSE-100 finished with a fall of 83.92 points or 0.18% to settle at 46,110.50.

“In our opinion, the market has already priced in a 100bps-hike in interest rate," said AKD Securities in its post-market comment. "Moving forward, the focus will remain on revival of International Monetary Fund (IMF) plan. From the standpoint of valuations, every 100bps jump in DR results in valuations coming off by ~6%, however, our valuations already incorporate RF rate of 10%."

On the economic front, foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased $381 million on a weekly basis, clocking in at $16.945 billion, showed data released on Thursday. The total liquid foreign reserves held by the country stood at $23.55 billion on November 12, 2021.

On the corporate front, Fauji Cement Company Limited (FCCL) approved a Scheme of Arrangement for the amalgamation of Askari Cement Limited.

KSE-100 down 0.75% ahead of monetary policy announcement

Sectors dragging the benchmark KSE-100 index down included technology and communication (99.21 points), fertilizer sector (36.59 points), and chemical (17.57 points).

Volume increased marginally, clocking in at 263.5 million on the all-shares index, up from at 238.5 million a day ago. However, the value of shares traded decreased to Rs8.47 billion on Thursday.

Merit Packaging Limited was the volume leader with 42.18 million shares, followed by Ghani Global Holdings with 29.06 million shares, and Service Fabrics at 17.73 million shares.

Shares of 340 companies were traded on Thursday, of which 150 registered an increase, 166 recorded a fall, and 24 remained unchanged.