Pakistan Equities Drop 357 Points in Anticipation of MPC Meeting

Pakistan Equities Drop 357 Points in Anticipation of MPC Meeting

Karachi, September 12, 2023 – Pakistan equities faced a decline of 357 points on Tuesday as investors adopted a cautious stance in anticipation of the upcoming Monetary Policy Committee (MPC) meeting.

The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) concluded the trading day at 45,508 points, a decrease from the previous day’s closing figure of 45,865 points.

READ MORE: Pakistan Stock Market Sheds 148 Points on Interest Rate Hike Reports

Market analysts cited investor sentiments turning negative due to the imminent monetary policy meeting scheduled for September 14. Various surveys conducted by research houses have suggested that the central bank may consider raising the benchmark policy rate by a significant margin, ranging from 150 to 200 basis points. This move could potentially take the interest rate to a new record high of 24 percent.

Analysts at Topline Securities characterized the day as lackluster for Pakistan’s equities market, marked by mixed sentiments and notably low trading volumes.

READ MORE: Share Investors to Stay Cautious Ahead of Monetary Policy Announcement

Despite the cautious atmosphere, some investors opted to capitalize on gains made previously, contributing to the KSE-100 index closing 357 points lower, reflecting a decrease of 0.78 percent.

Among the sectors that weighed down the market were banks, exploration and production (E&P), and cement, with notable laggards including Oil and Gas Development Company (OGDC), MCB Bank (MCB), Dawood Hercules (DAWH), Lucky Cement (LUCK), and Bank Al-Habib (BAHL), collectively accounting for a loss of 181 points.

READ MORE: Pakistan Stock Market Gains 256 Points Amid Thin Volumes

The day’s trading volume amounted to approximately 124 million shares, with a total value of Rs4.9 billion. Hub Power Company (HUBC) led the volume chart, with 11.8 million shares changing hands during the session.

As the market continues to navigate economic uncertainties and the potential impact of the upcoming MPC decision, investors are closely monitoring developments, with a focus on the central bank’s interest rate decision and its implications for various sectors within Pakistan’s equities market.

READ MORE: Pakistan Equities Witness 50 Points Decline Amid Rising Interest Rate Concerns