KSE 100 index sheds 240 points as monetary policy remains unchanged

KARACHI: The stock market on Tuesday continued its downward trajectory and lost over 240 points over lack of political and economic triggers and subdued investor confidence.

The KSE 100 index at the Pakistan Stock Exchange (PSX) shed 240.04 points, or a decline of 0.57 percent, to eventually close at 42,299.19 points. The indices shot up till 42,539.23 points but eventually settled down before trading was suspended. The total volume of scripts was 137.155 million valued at Rs5.59 billion.

Meanwhile, the lower KSE 30 index also declined by 146.42 (-0.74%) and close at 19,591.46 points. The total volume of scripts was 62.943 million. There was increased investment in the cement and textile sector as the top active stock remained MLCF (0.64%), Hascol (5.47%), Unity Foods (0.14%), DGKC (0.40%), Cherat Cement (1.05%), Fauji Foods (1.84%), and Power (2.34%).

The banking sector saw a decline with most of the companies in the red. There was anticipation over the new monetary policy but the State Bank of Pakistan announced to retain the key interest rate at 13.25 percent. The announcement will have an effect on trading as the market reopens on Wednesday and could dip stock prices.

The ongoing week continued with a downward trajectory continuing with the trend seem last week. It has been a lacklustre week at the stock market which remained range bound and directionless over the lack of trigger and investors anticipating the new monetary policy.

The stock market on Monday recorded a decrease of 93.79 points to settle at 42,539.23 points. The market started with volatility as international crude prices were down which lead to selling pressure in the exploration and petroleum sector. Pakistan is also unlikely to be removed from the FATF’s grey list despite support from Chinese and other Western allies.