The monetary policy for the next half of FY08, announced by the SBP on Thursday will not affect the local share market directly, as the market participants and investors were expecting the same policy, analysts said.
"The T-bills rates will rise and Kibor will increase, however its net impact will be on high leveraged sectors like textile and cement," they believed.
"The share market may dip temporarily following the announcement of SBP's monetary policy, however it would recover quickly," Ahmed Nabeel, COO at JOV & Co said.
"The market participants and investors were expecting the same policy as SBP could not present any better policy than what it announced," Nabeel added. He said that the textile and cement sectors would mainly be affected as the financial expenses and cost of doing business are expected to increase following the announcement.
However, he was of the view that the announced monetary policy would not be able to control inflation in the country. Atif Malik, senior analyst at JS Global Capital Limited said that the market was foreseeing the same monetary policy and it would have no effect on the share market.
He said that over Rs32 billion would shift from banks to SBP after a rise in CRR by 8 percent. However, there would not be any major impact on the banking sector, he added.
Malik said that the lending rates would increase affecting cement and textile sectors. On the other hand, the increase in lending rates would be beneficial for banking sector, he added.