Pakistan equities witnessed a selling spree early today after the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) on Friday raised the policy rate by 100 basis points to 16 percent.
The Pakistan Stock Exchange (PSX) had a frantic sell-off during the early trading hours, with the benchmark KSE-100 index losing 727 points after trading resumed on Monday.
The KSE 100 index initially opened on a negative note at 42,936.73, down over 700 points, dropping as low as 42,204 by 9:30 AM. During trading hours, investors opted to offload their positions in an environment of higher uncertainty with regard to the country’s ease of doing business following the central bank’s surprise rate hike.
According to Capital Stake, the benchmark KSE 100 index slumped to the day’s low of 41,963.94 (losing 972.79 points). It settled lower by 865.39 points at 42,071.34. The KMI 30 index plunged by 1,861.06 points closing at 70,989.02. While the KSE All Share index fell 517.58 points settling at 28,542.60.
Around 244 million shares were traded at the exchange, with 295 of the 356 active scrips declining in value, only 50 advancing and 11 remaining unchanged.
Overall market volumes increased by 37.50 percent (176.70 million shares in the previous session) to 242.97 million shares. Out of the total scrips traded 50.12 percent belonged to KSE 100 scrips. K-Electric Limited (KEL -6.14 percent) was the volume leader with 29.02 million shares traded. Followed by Worldcall Telecom Limited (WTL -4.23 percent) and Dewan Farooque Motors Limited (DFML -0.50 percent). The scrips had 22.52 mn shares and 13.79 million shares traded, respectively.
Sectors painting the benchmark KSE 100 in red included the Cement sector (198.27 points), Oil & Gas Exploration sector (114.77 points), and the Banking sector (110.06 points). Company-wise, Lucky Cement Limited (LUCK 78.33 points), Engro Corporation Limited (ENGRO 49.13 points), and Pakistan Oilfields Limited (POL 38.26 points), were top negative contributors.
Equity markets around the globe showed a mixed trend. Crude oil prices moved south with WTI crude oil price falling by 3.5 percent to $73.52 while Brent crude oil price was down by 4 percent to $80.7.