Despite COVID jitters, KSE-100 inches up in range-bound session

KSE-100 retreats, succumbs to selling pressure

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After a day’s respite, the market once again succumbed to the selling pressure brought about by fears of soaring inflation and expected policy hikes.

Investors have become cautious due to the postponement of the US$6 billion International Monetary Fund (IMF) plan, which is expected to resume last week.

In addition, market participants are also paying close attention to the parity of the rupee against the US dollar and soaring inflation. If the central bank raises the policy interest rate at the next meeting scheduled for November 26, this will justify the central bank’s position.

At the close, the benchmark KSE-100 index fell 281.70 points, or 0.60%, to close at 46,348.18 points.

A report by Arif Habib Limited (AHL) pointed out that the market opened higher, but the market transactions in the first half of the year were still lacklustre.

“Worries about inflation and the weakening of the Pakistani rupee against the U.S. dollar have created uncertainty for investors to establish new positions, which ultimately led to the profit settlement of positions on the last day of the second half of the year,” it said.

The report added that as market participants are concerned about the upcoming monetary policy interest rate hike, the banking industry has accumulated.

The brokerage said: “As the market has witnessed a large volume of third-tier stocks, activities continue to maintain sideways,” adding that, on the other hand, institutional activities are still lacklustre.

Industries that contribute to performance include commercial banking (-60 points), exploration and production (-55 points), technology (-40 points), cement (-37 points), and engineering (-19 points).

There are 352 listed company stocks in this transaction. At the close, 95 stocks closed in green, 232 closed in red, and 25 remained unchanged.

The overall trading volume fell to 269.5 million shares from 320.3 million shares on Wednesday. The value of the shares traded on that day was 9.5 billion rupees.

Ghani Global Holdings led the way with 30.2 million shares, with a loss of 1.05 rupees to close at 32.19 rupees. Followed by Service Fabrics, which held 20.5 million shares, rose 0.65 rupees to close at 12.09 rupees, and Telecard Limited held 14.3 million shares and lost 0.34 rupees to close at 18.97 rupees.

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