KSE 100 index drops below 42,000 level

KARACHI: The downward trajectory at the Pakistan Stock Exchange continued on Wednesday as the stock market lost over 400 points during intra-day trading due to subdued investor confidence and lack of any positive triggers.

The benchmark KSE 100 index dropped by 400.49, or a decrease of 0.96 percent, to close at 41,898.70 points. The market dropped below the 42,000 level before trading was suspended. The highest level reached was 42,429.49 points before the indices dropped. The total volume of scripts was 127.109 million valued at Rs6.358 billion.

Meanwhile, the lower KSE 30 index also dropped by 198.45 points (-1.01 percent) to close at 19,393.01 points. The total volume of scripts also declined to 57.54 million. Share prices of most active stock declined notably World Call (-6.03%), Hascol (-2.04%), MLCF (-3.24%), K-Electric (-2.09%), Fauji Fertilizer (-3.41%), BOP (-1.78%), and Unitty Food (3.07%).

The banking sector was the hardest hit with most of the trading companies in the red. The State Bank of Pakistan yesterday announced the first monetary policy of the year and decided to retain the key interest rate at the elevated level of 13.25 percent for the next two months. This has a toll on the stock market as investors were cautious leading to selling pressures.

The stock market has been facing a lacklustre week over the lack of any positive or economic triggers. The central bank’s announcement has stated that it was necessary to reduce the inflation rate currently hovering at around 12.06 percent and supporting sectors to increase growth. It is expected that there will be cuts in the policy rate by March 2020.