PSX 10 points up following interest rate hike

Benchmark index increases 0.03% to settle at 32,981.99


The mood at the stock market turned somber on Wednesday as the KSE-100 index ended with a meager gain of 10 points after clarity emerged over the much-anticipated monetary policy. The monetary policy committee hiked the key interest rate by 100 basis points to 13.25% on Tuesday. State Bank of Pakistan (SBP) Governor Reza Baqir announced the monetary policy at a press conference.
The market opened on a positive note and touched the intra-day high within minutes but battered sentiments over economic uncertainty dragged the index into the negative territory later. The index still managed to recover and close with a slight rise. Fertiliser and automobile stocks remained in the negative zone. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,982 points as against 32,972 points showing an increase of 10 points.
Overall, trading volumes decreased to 111.6 million shares compared with Tuesday’s tally of 138.7 million. The value of shares traded during the day was Rs3.7 billion. Shares of 308 companies were traded. At the end of the day, 145 stocks closed higher, 146 declined and 17 remained unchanged.
Maple Leaf Cement was the volume leader with 16.6 million shares, staying stable at Rs21.07. It was followed by TRG Pakistan with 10.8 million shares, losing Rs0.65 to close at Rs13.64 and Lotte Chemical with 8.2 million shares, gaining Rs0.89 to close at Rs16.72. Foreign institutional investors were net buyers of Rs73.95 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
E&P, O&GMCs, Cement, Chemical, Fertilizer and Banking Sector scrips performed well earlier today, however, save for O&GMCs and Chemical, all went bust by session’s end.
LOTCHEM, SSGC, SNGP, EPCL traded near upper circuits. Cement sector led the volumes table with around 30 million shares (contributed by MLCF (16.5 million), DGKC (4.8 million) and FCCL (3.5 million)), followed by Chemical with 15M shares (contributed by LOTCHEM (8.2 million)).
Sectors contributing to performance include Banks (+30 points), Power (+17 points), Food (+15 points), Chemical (+14 points), Autos (-23 points), E&P (-20 points) and Textile (-10 points).
Volumes declined from 138.7 million shares to 111.5 million shares (-20 percent DoD). Average traded value also declined by 18 percent to reach US$ 23.2 million as against US$ 28.3 million.
Stocks that contributed significantly to the volumes include MLCF, TRG, LOTCHEM, DGKC and UNITY, which formed 40 percent of total volumes.
Stocks that contributed positively include HUBC (+21 points), HBL (+19 points), DAWH (+16 points), NESTLE (+15 points) and EPCL (+8 points). Stocks that contributed negatively include OGDC (-14 points), INDU (-14 points), FFC (-14 points), PPL (-10 points) and NML (-9 points).

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