Karachi, October 30, 2023 (PAKONOMY): In a thrilling trading session, the Pakistan Stock Exchange (PSX) witnessed a buying frenzy on Monday, as investors eagerly awaited the announcement from the State Bank of Pakistan’s Monetary Policy Committee (MPC). The benchmark KSE-100 Index soared by over 1% ahead of the crucial monetary policy decision.
The MPC’s decision to maintain the key policy rate at 22% was revealed after the trading session, and it further fueled the market’s positive momentum. The KSE-100 Index remained predominantly in positive territory throughout the day, closing at 51,482.93, marking an impressive increase of 539.09 points, equivalent to a gain of 1.06%.
Several sectors played pivotal roles in driving the index upwards. Power, fertilizer, cement, and banking sector stocks contributed positively, with heavyweight companies such as HUBC, DAWH, LUCK, UBL, and MEBL collectively adding 267 points, as reported by brokerage house Topline Securities in its post-market analysis.
However, not all sectors saw gains. HBL, BOP, and SYS experienced profit-taking, leading to a combined loss of 68 points, as observed in the trading session.
Market sentiment was notably influenced by expectations of an interest rate cut, a factor that has been on investors’ minds in recent times. This optimism was reinforced as equities continued their upward trajectory.
This surge in the KSE-100 Index came after a bearish trend ruled the PSX on the previous trading day, with the index closing lower by 241 points. Investors had opted to offload their holdings in the rollover week.
In parallel developments, the Pakistani rupee faced a sixth consecutive session of losses against the US dollar, depreciating by 0.14% in the interbank market. According to the State Bank of Pakistan, the local currency settled at 280.95, reflecting a decrease of Re0.38.
Furthermore, the central bank issued a no-objection certificate (NOC) to Habib Metropolitan Bank Limited, a subsidiary of Habib Bank AG Zurich – Switzerland. The NOC allows the bank to establish a wholly-owned Exchange Company (EC), a move with potential implications for Pakistan’s financial sector.
In terms of trading statistics, the volume on the all-share index decreased to 286.6 million shares from the 350.8 million recorded in the previous session. Nevertheless, the value of shares increased to Rs11.4 billion, up from Rs10.6 billion in the preceding trading session.
Pak Refinery emerged as the volume leader with 32.4 million shares, followed by B.O.Punjab with 20.3 million shares and WorldCall Telecom with 15.2 million shares. A total of 351 companies were actively traded on Monday, with 232 registering increases, 100 experiencing declines, and 19 remaining unchanged.
This significant upturn in the KSE-100 Index underlines the market’s responsiveness to key economic events and policy decisions, setting the stage for further economic developments in Pakistan.