LAHORE: The Pakistan Stock Exchange (PSX) opened the week on a positive note but the optimism was short-lived as State Bank of Pakistan’s (SBP) decision to raise its policy interest rate by 25 basis points to 6 on Friday, citing the depreciation of the rupee, soon took over investors’ sentiments. This is the first change since May 2016.
Following the announcement, the market started its first trading session positive. The KSE 100 index marked intraday high of 44,855.77 with an appreciation of 304.64 points but soon shed gains. The index marked intraday low of 44,337.72 with loss of 213.41 points. The KMI 30 index dropped 810.95 points to 74,858.58 while the KSE All Share Index was lower by 117.60 points. The advancers to decliners ratio stood at 148 to 197.
The market volumes declined to 192.33 million compared to the previous session where 270.76 million shares were exchanged. Dewan Cement Limited (DCL +4.99 per cent) topped the volume chart after PSX notification of shifting the script from defaulters segment to normal segment. The Bank of Punjab (BOP +3.72 per cent) was next with a volume of 23.34 million shares. The commercial bank sector supported the indices and added 2.59 per cent to its cumulative market capitalisation.
Crescent Steel and Allied Products Limited (CSAP -1.94 per cent) posted 15.60 per cent depreciation in its sales compared to the last quarter. Sales of Rs 2.79 billion were also lower than Rs 3.06 billion recorded in the same period last year. Earnings per share clocked at Rs 5.35 down from Rs 6.64 in the 2QFY17. The management also declared a final cash dividend of Rs 1.00 per share.
Technically speaking, the 100 Index extended declines from the previous week along with decline in market participation in a bid to cool off following a vigorous run-up since mid-December. Immediate support is 44,122 (previous week low) while immediate resistance is 45,495 (previous week high).
