KARACHI: The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) fell by 796 points on Tuesday on hefty increase in Karachi Interbank Offered Rate (KIBOR) following key policy rate rise.
The KSE-100 index closed at 44,949 points as against the previous day’s closing of 45,745 points, showing a decrease of 796 points.
Analysts at Arif Habib Limited said that today again, Bears ruled over the bulls as investors were unable to digest the hawkish stance of the last Monetary Policy Committee (MPC) which resulted in double-digit six-month KIBOR.
A hefty increase in the finance cost of leveraged businesses will eventually lower profits as a major portion of borrowing appears from KIBOR-led lending.
The second day of roll-over week became under pressure as investors took a cautious side and opted for squaring of roll-over positions. In the last trading hour, a bloodbath session was witnessed as selling came across the board.
Sectors contributing to the performance include Technology (-178 points), Cement (-145 points), Commercial Banks (-94 points), E&P (-64 points) and OMC’s (-44 points).
Volumes increased from 261.9 million shares to 264.6 million shares (-1.0 per cent DoD). The traded value decreased by 11.1 per cent to reach US$ 55.8 million as against US$ 62.8 million.
Stocks that contributed significantly to the volumes include TRG, WTL, BYCO, GTECH and HASCOL.