Pakistan stocks up amid rupee depreciation

Pakistan stocks up amid rupee depreciation

KARACHI: Pakistan stocks ended with a gain of 57 points on Wednesday despite investors’ concerns of falling rupee value and expected rate hike in upcoming monetary policy.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 41,160 points from previous day’s close of 41,103 points, showing a gain of 57 points.

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Analysts at Arif Habib Limited said that the benchmark KSE-100 index witnessed sluggish session.

Investor’s participation continued to remain dry due to concerns regarding rate hike in the upcoming monetary policy and PKR depreciation against the dollar.

READ MORE: Dollar ends near Rs208 in interbank; Rupee fall continues

The exchange rate recorded a decline of Rs1.05 in the value of Pakistan Rupee (PKR) to end at Rs207.99 against the dollar from previous day’s closing of Rs206.94 in the interbank foreign exchange market.

The State Bank of Pakistan (SBP) is scheduled to announce monetary policy statement on July 07, 2022. The market consensus believed an increase of 100 basis points to 14.75 per cent in the key policy rate.

READ MORE: Pakistan may see further 100bps hike in policy rate

Main board activity remained dull but decent volumes were recorded in the 3rd tier stocks.

Sectors contributing to the performance include Banks (+35.9 points), Cement (+15.5 points), Technology (13.9 points), Power (+11.7 points) and OMC (+6.7 points).

Volumes increased from 76.9 million shares to 98.2 million shares (+27.8 per cent DoD). Average traded value also increased by 12.2 per cent to reach US$ 12.9 million as against US$ 11.5 million.

Stocks that contributed significantly to the volumes are AGL, UNITY, ANL, LOTCHEM and SNGP.

READ MORE: Weekly Review: stocks to stay positive on improved forex reserves

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