KSE-100 records roller-coaster session ahead of monetary policy announcement

The Pakistan Stock Exchange (PSX) recorded a turbulent session on Monday as the KSE-100 Index remained volatile in early hours and range-bound in later hours. The market remained in the positive zone throughout the session as investors expected the State Bank of Pakistan (SBP) to leave the interest rate unchanged at 15% in monetary policy announcement.

As a result, the KSE-100 Index rose 126.39 points or 0.3% to close at 42,211.64.

After the market closed, the Monetary Policy Committee of SBP announced status quo in the policy rate.

Trading began with a jump and the KSE-100 Index hit intra-day high value in initial hours. A selling spree however, erased few of the gains by noon. From this point onward, the market traded in a narrow range but still it managed to close in green.

KSE-100 snaps four-session winning streak, falls 0.18%

Driven by positivity, cement and oil sectors closed the session in the green however, chemical and automobile spaces ended on a mixed note. Banks and fertiliser sectors saw massive selling activity and closed with losses.

A report from Capital Stake stated that the PSX started first session of the week in full vim and vigor.

“Indices traded in green for most part of the day whereas volumes depreciated from last close,” it said. “News reports of China providing $2.4 billion loan facility to Pakistan, helped increase investors’ confidence.”

A report from Arif Habib Limited stated that bulls and bears engaged in battle at the PSX throughout the trading session.

“In anticipation of a rate cut in the monetary policy, the market opened in the green and remained positive for the majority of the day,” the report said. “The main board volumes fell from the previous close as investors’ participation remained sluggish although third tier stocks remained in the limelight.”

On the economic front, domestic cement sales fell 5.24% on year-on-year basis while exports contracted by 17.48% compared to same period last year, revealed data from All Pakistan Cement Manufacturers Association.

Pakistan’s rupee maintained its upward trajectory against the US dollar for the 12th successive session on Monday and closed at 217.97 after appreciating Rs1.95 or 0.89%.

Sectors painting the benchmark KSE-100 Index in green included technology and communication sector (91.94 points), cement sector (36.23 points) and oil and gas exploration sector (23.90 points).

Volume on the all-share index retreated to 240.2 million from 313.3 million on Friday. On the other hand, the value of shares traded rose to Rs10.5 billion from Rs9.42 billion recorded in the previous session.

WorldCall Telecom was the volume leader with 31.2 million shares, followed by Pak Elektron with 27.1 million shares and TRG Pakistan with 26.7 million shares

Shares of 336 companies were traded on Monday, of which 161 registered an increase, 149 recorded a fall, and 26 remained unchanged.