PSX gains 103 points as MPC keeps interest rate unchanged


Pakistan Stock Exchange (PSX) extended gains for the third day in a row, with the KSE-100 Index gaining 103.46 points (+0.23 percent) to close at 45,753.51 points on Friday.
The market opened on a bullish note as the Monetary Policy Committee (MPC) Thursday decided to keep the policy rate unchanged at 22 percent, despite the fact that the market was expecting a rate hike by 100-200bps. A boost to the stocks was expected as the market had already adjusted itself for an interest rate hike. The benchmark index crossed the 46,000 points level once in both sessions of Friday but both times it faced strong resistance and failed to sustain it.
The indices eroded most of the gains in second session after the Supreme Court struck down some sections of the amendments made to the National Accountability Ordinance (NAO) 1999 by the previous government, as it announced its reserved decision on Pakistan Tehreek-e-Insaf (PTI) chief Imran Khan’s plea challenging the amendments to the law. The SC by majority 2 to 1 declared the former prime minister’s plea challenging amendments to the NAB law as maintainable.
Another positive factor for the market was the rupee’s consistent appreciation against the US dollar in the interbank market by another Rs1.11 but the market remained somewhat unaffected. This indicated a lack of confidence among investors in the market.
The benchmark index traded in a range of 392.36 points, showing an intraday high of 46,093.01 points and an intraday low of 45,700.65 points. Among other indices, the KSE All Share Index gained 66.62 points (+0.22 percent) to close at 30,472.90 points, while KMI All Share Islamic Index gained 107.87 points (+0.49 percent) to close at 22,195.66 points.
Total volumes traded for the KSE-100 Index increased by 78.78 million shares to 140.17 million shares against 61.39 million shares traded a session earlier. The overall market volumes increased by 84.36 million shares to 222.53 million shares against 138.17 million shares traded a session earlier.
Among scrips, MCB topped the volumes with 27.21 million shares, followed by MLCF (24.66 million) and NCPL (13.98 million). Stocks that contributed significantly to the volumes included MCB, MLCF, NCPL, WTL, and PPL, which formed over 36 percent of total volumes.
A total of 317 companies traded shares in the stock exchange against 315 a session earlier, out of which shares of 176 closed up, shares of 107 closed down while shares of 34 companies remained unchanged. A total of 93 companies traded shares in the KSE-100 Index against the same number of companies a session earlier, out of which share price of 53 companies closed up, 34 closed down and six remained unchanged.
The number of total trades increased by 40,048 to 107,538 as compared to 67,490 trades recorded in the previous session, while the value traded increased by Rs8.28 billion to Rs11.06 billion as compared to Rs2.78 billion in the previous session.
In terms of rupee, PSEL remained the top gainer and witnessed an increase of Rs49.98 (+7.48 percent) per share, closing at Rs719.98. The runner-up remained MEHT, the share price of which climbed up by Rs40.5 (+7.5 percent) to Rs580.5. BATA remained the top loser in terms of rupee and witnessed a decrease of Rs37.98 (-2.23 percent) per share, closing at Rs1,662.02, followed by LCI, the share price of which fell by Rs22.41 (-3.58 percent) to close at Rs602.8 per share.
The major sectors taking the index towards north remained cement (138 points), power generation & distribution (40 points), miscellaneous (19 points), textile composite (13 points), and engineering (12 points). The major companies adding points to the index remained LUCK (60 points), HUBC (34 points), PSEL (28 points), CHCC (21 points), and DGKC (20 points).
The sectors taking the index towards south were commercial banks (116 points), fertilizer (17 points), food & personal care products (8 points), automobile assembler (8 points), and paper & board (5 points). The major companies depriving the index of points remained UBL (36 points), FFC (34 points), MEBL (24 points), BAFL (14 points), and HBL (12 points).