Stocks fall by 519 points on policy tightening concerns

Stocks fall by 519 points on policy tightening concerns

KARACHI: Stocks fell by 519 points on Monday owing to concerns related to monetary policy tightening in the announcement scheduled on December 14, 2021.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,877 points as against last Friday’s closing of 43,396 points showing a decrease of 519  points.

Analysts at Arif Habib Limited said that the market continued to remain in the red zone due to concerns over mounting inflation and hawkish stance in the upcoming monetary. Activity remained lackluster.

Market opened on a bleak note and mostly cyclical stocks remained under pressure throughout the day. In the last trading hour, across the board selling was witnessed due to lack of any positive trigger.

READ MORE: SBP increases policy rate by 150 basis points to 8.75%

Sectors contributing to the performance include Technology & Communication (-147 points), E&P (-88 points), Commercial Banks (-72 points), Cement (-28 points) and Pharma (-27 points).

Volumes decreased from 179.1 million shares to 150.3 million shares (-16.1 per cent DoD). Traded value also decreased by 21.7 per cent to reach US$ 29.6 million as against US$ 37.8 million.

Stocks that contributed significantly to the volumes include WTL, BYCO, FATIMA, TRG and HASCOL.