Islamabad August 31 2023: On Thursday, the 100-index of the Pakistan Stock Exchange (PSX) followed a bearish trajectory, dropping by 1,242.14 points, which represented a negative change of 2.69 percent.
The continuous depreciation of the Pakistan Rupee against the US dollar over the course of 13 consecutive sessions has led to anticipation of an increase in interest rates, consequently prompting a decline in the stock market index.
In the interbank market, the Pakistan Rupee has dropped by PKR 1.09 or 0.4 percent, bringing its trading rate to a new low of 305.54 at closing against the Dollar in country’s history. Notably, during the previous session, the Rupee concluded trading at 304.45 against the Dollar in the same market. The Rupee dropped PKR 17.39 or 5.7 percent against dollar since the caretaker setup took oath.
Pakistan caretaker finance minister said the country is in worst than anticipated economic situation and the pressure on fiscal account did not provide room for subsidies except to protect the most vulnerable through higher social safety nets, like BISP.
The index concluded the day at 45,002.41 points, down from the previous trading day’s closing value of 46,244.56 points. MCB Limited (MCB) trimmed the highest negative points of 120 followed by 103 by United Bank Limited (UBL) and 72 by Hub Power Company Limited (HUBC). Meezan Bank (MEBL) trimmed the index by 70 points, while Pakistan Petroleum Limited (PPL) and Lucky Cement Limited (LUCK) caused the index to drop by 68 and 63 points, respectively.
Trading activity saw 287,356,194 shares exchanged, a notable increase from the 200,288,813 shares traded on the preceding day. The total trading value for the day was recorded at PKR 12.303 billion, as opposed to PKR 8.987 billion on the prior trading day.
In the stock market, a total of 325 companies participated in share transactions. Among these, 48 companies observed gains, while 257 companies experienced losses. Additionally, the share prices of 20 companies remained unchanged.
Notable trading activity came from the three top-trading companies: WorldCall Telecom traded 31,867,079 shares at PKR 1.14 per share, Oil and Gas Development Company saw 17,491,092 shares traded at PKR 92.95 per share, and Cnergyico PK had 13,083,524 shares traded at PKR 2.84 per share.
Yields on Pakistan Investment bonds and treasury bills experienced a significant increase in the secondary market during the week, driven by expectations of a forthcoming rise in interest rates.
“The Monetary Policy Committee is set to convene on September 14th, and there is widespread anticipation of a substantial increase in the benchmark rate, potentially ranging from 200-300 basis points” Insight Securities, a Karachi based brokerage, writes in its research report.
