Karachi, September 13, 2023 – The Pakistan Stock Market continued its cautious stance on Wednesday, remaining range-bound as investors eagerly awaited the forthcoming monetary policy announcement.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) exhibited a slight gain, closing at 45,591 points, up 83 points from the previous day’s closing figure of 45,508 points.
Financial analysts at Ismail Iqbal Securities noted that the equity market displayed subdued activity throughout the day, primarily due to the anticipation surrounding the decision of the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP). The MPC’s monetary policy announcement is scheduled for September 14, 2023.
Trading volumes experienced a dip, with 103 million shares changing hands today, compared to the 125 million shares traded during the previous session. This decrease in trading activity signified a sense of caution among investors, who appeared to be adopting a wait-and-see approach until the monetary policy direction becomes clear.
The sectors that made significant contributions to today’s trading session were cement, oil and gas marketing companies, and oil and gas exploration companies. These sectors collectively added 85 points to the index, reflecting investor interest in these industries amid the market’s uncertainty.
As the market prepares for the crucial monetary policy announcement, market participants remain on edge, as the central bank’s decision is expected to have a substantial impact on the economic and financial landscape of Pakistan. Investors are closely monitoring the outcome of the MPC meeting, which is set to provide insights into the SBP’s stance on interest rates, inflation, and overall economic policy.
With the anticipation of potential changes in interest rates and economic outlook, the Pakistan Stock Market is likely to remain sensitive to external factors in the days leading up to the monetary policy announcement. Investors and analysts will be closely analyzing the central bank’s decision and its implications for the stock market and the broader economy.