Policy rate qualm, record trade gap hit PSX KSE-100 tumbles by 2135 points

Policy rate qualm, record trade gap hit PSX KSE-100 tumbles by 2135 points


Business Desk

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a bloodbath on Thursday as the benchmark KSE 100-index declined by 2135 points, or 4.71 per cent, to close at 43,234 points.
A total of 386,753,143 shares were traded during the day whereas the price of shares stood at Rs 14.062 billion. As many as 365 companies transacted shares in the stock market, 16 of them recorded gain and 338 sustained losses whereas the share price of 11 companies remained unchanged. According to Arif Habib Limited investors were unable to digest series of outrageous economic indicators. First of all, it said, highest ever monthly trade deficit number of $5.1 billion, exports stood at $2.9b while imports were $8b. “Secondly, expectation of higher interest rate increase in the upcoming monetary policy as 3m cut-off T-bill yields increased by 229bps to 10.79%, 6m at 11.50% and 12m at 11.51%. Lastly, expectation of higher CPI number next month due to low base effect and further devaluation of rupee. Mostly stocks closed on their lower circuit. Moving forward, we expect the market to remain volatile and recommend cautious approach,” it added.
The three top trading companies were WorldCall Telecom with a volume of 33,019,000 shares and price per share of Rs 2.01, Dolmen City with a volume of 29,583,500 and price per share of Rs 11.70 and Byco Petroleum with volume of 22,828,500 and price per share of Rs 5.95.