Karachi, September 15, 2023 – Pakistan stock market closed in the green on Friday, following the decision to maintain a status quo in the policy interest rate.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) concluded the trading day at 45,753 points, marking an increase of 103 points from the previous day’s closing figure of 45,650 points, representing a gain of 0.23 percent.
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Analysts at Topline Securities noted that the market primarily traded in the positive zone throughout the trading session. This positive sentiment can be attributed to the State Bank of Pakistan (SBP) opting to maintain its policy rate at 22 percent, which was in contrast to market expectations of a rate hike, considering the high inflationary environment.
However, toward the end of the trading session, some profit-taking was observed, resulting in the index settling at the 45,754 level, still registering a modest increase. Notable contributors to the index’s positive performance included stocks such as LUCK, HUBC, PSEL, CHCC, and DGKC, collectively contributing 161 points. Conversely, UBL, FFC, MEBL, BAFL, and HBL witnessed a decline in value, weighing down on the index by 120 points.
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In terms of trading activity, the volume of shares traded for the day amounted to 222 million shares, with a total value of Rs. 11 billion. MLCF emerged as the volume leader for the day, with a trading volume of 27 million shares.
On a weekly basis, the KSE-100 Index recorded a marginal decline of 0.56 percent week-on-week (WoW). During the week, the market largely remained range-bound, with a lack of significant triggers to drive more substantial movements.
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The decision by the SBP to maintain the policy rate at the current high level appears to have provided some stability and assurance to investors in the stock market, contributing to the positive sentiment witnessed during the trading session. However, market participants continue to closely monitor economic indicators and policy developments for potential impacts on market dynamics in the coming weeks.
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