Equity market witnesses selling ahead of policy rate announcement

KARACHI: The equity market witnessed selling pressure on Wednesday as the central bank is announcing monetary policy tomorrow.




The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,607 points as against 40,624 points showing a decline of 17 points.

Analysts at Arif Habib Limited said that the market performed roundabout the same way as it did yesterday, oscillating between +153 points and -94 points with a total volume of 125 million shares.

Nervousness among investors was quite apparent as the D-Day approaches for the Monetary Policy, which will be announced tomorrow.

Selling was observed across the board, Food, Technology, Cement, Steel and Chemical Sectors.

Among the banking sector, HBL and UBL also saw selling pressure and traded in red close to the end of session.

Fertilizer sector also bore the brunt of negative sentiment and FFBL, despite posting a decent result failed to garner support.

Sectors contributing to the performance include Food (+22 points), Fertilizer (-27 points), Tobacco (-21 points), Cement (-13 points), Banks (-13 points), Textile (-9 points).

Volumes declined again from 155mn shares to 125mn shares (-19 percent DoD).

Average traded value also declined by 28 percent to reach $35.8 million as against $ 49.5 million.

Stocks that contributed significantly to the volumes include FFL, PIAA, STPL, DCL and HUMNL, which formed 29 percent of total volumes.

Stocks that contributed positively include NESTLE (+19 points), DAWH (+16 points), MCB (+10 points), PPL (+9 points), and HUMNL (+8 points). Stocks that contributed negatively include PAKT (-21 points), FFC (-19 points), ENGRO (-18 points), FFBL (-10 points) and KTML (-9 points).

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