KSE-100 rises 1.26% on interest rate clarity

The Pakistan Stock Exchange (PSX) took a U turn on Tuesday and the KSE-100 index increased 1.26% owing to clarity over policy rate and investor optimism regarding approval of next tranche of loan by the International Monetary Fund (IMF) in the next few days.

On the back of strong investor spirits, the KSE-100 index rose 540.11 points or 1.26% to close at 43,366 points.

In its monetary policy announcement, the State Bank of Pakistan (SBP) maintained status quo in the interest rate at 15% which signalled that economy is on path of stability and revived investor sentiments.

IMF board meeting on 29th

Moreover, the IMF board is set to discuss Pakistan’s case on August 29 and the economic managers of the country remain hopeful of approval of the next tranche in the meeting.

Index-heavy automobile, cement, banks, fertiliers and oil sectors saw massive investment pouring in.

KSE-100 falls below 43,000 on monetary policy anticipation

The KSE-100 index began the day with a spike and remained on an upward trajectory throughout the day. The market turned range-bound after initial upsurge and closed in the green zone.

A report from Capital Stake stated that tables turned at the PSX as it ended the session on Tuesday in green.

“Indices accumulated gains all day long whereas volumes increased from last close,” it said.

A report from Topline Securities said that equities closed on a positive note where benchmark KSE-100 Index settled at 43,366 level (up 1.26%).

“The day kicked off on a positive note as SBP maintained policy rate at 15%. Moreover, IMF will consider Pakistan’s 7th and 8th review under EFF facility on August 29, 2022 which led the market to make an intra-day high of 592 points,” the report said.

As per analysts, State Bank of Pakistan’s decision to keep the policy rate unchanged and the news of Pakistan securing funding from Gulf states boosted investors’ confidence.

On the economic front, rupee ended the day 0.46% or Re1 lower against the US dollar at Rs217.66.

Sectors lifting the benchmark KSE-100 higher included fertiliser (124.40 points), cement (122.19 points) and oil and gas exploration (72.50 points).

Volume on the all-share index soared to 324.4 million from 194.67 million on Monday. On the other hand, the value of shares traded surged to Rs9.65 billion from Rs5.33 billion recorded in the previous session.

Hascol was the volume leader with 64.12 million shares, followed by K-Electric with 25.23 million shares, and WorldCall Telecom with 16.97 million shares.

Shares of 341 companies were traded on Tuesday, of which 211 registered an increase, 107 recorded a fall, and 23 remained unchanged.