KSE-100 nosedives on economic jitters ahead of SBP policy meeting

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Index sheds 714 points as investors remain cautious due to uncertainty surrounding the monetary policy

KARACHI: The Pakistan Stock Exchange (PSX) portrayed weak sentiments ahead of monetary policy, scheduled to be announced today (Tuesday).

Indices moved in the downward trajectory from word go, as investors adopted a cautious approach due to uncertainty surrounding the monetary policy.

Market analysts expect another hike from the current interest rate of 12.25pc, which is already the highest level since October 2011. Meanwhile, foreign investors were net buyers in the previous week (from July 8th to July 12th) with a net inflow of $5.91 million.

On the economic front, the US Dollar gained Rs1.21 against Pakistani Rupee on Monday. The dollar was being traded at Rs160 in the interbank market whereas it was being sold in the open market at Rs160.50 (an increase of Rs0.75).

Shedding 776.67 points, the KSE-100 Index reached its intraday low of 32,895.82. It eventually closed lower by 714.14 points at 32,958.35. The KMI-30 Index lost 1,402.05 points to end at 51,833.84, while the KSE All Share Index depreciated by 420.38 points to end at 24,231.79.

The refinery sector lost 6.86pc from its cumulative market capitalization. Attock Refinery Limited (ATRL -5.00pc) and National Refinery Limited (NRL -4.99pc) touched their lower locks. Byco Petroleum Pakistan Limited (BYCO -8.40pc) and Pakistan Refinery Limited (PRL -2.56pc) also closed in the red.

Moreover, the oil and gas marketing sector lost 4.28pc from its total market cap. Pakistan State Oil Company Limited (PSO -5.00pc), Sui Northern Gas Pipeline Limited (SNGP -4.99pc) and Hascol Petroleum Limited (HASCOL -4.99pc) remained floored, while Sui Southern Gas Company Limited (SSGC -4.92pc) and Shell Pakistan Limited (SHEL -4.51pc) also closed in the red.

In a notification sent to the exchange, Avanceon Limited (AVN -4.99pc) announced that its board of directors has unanimously decided to dispose of the after-market engineering and technical services-related business segment at Rs819 million to its wholly-owned subsidiary, against the issuance of 81.90 million shares of Rs10 by the subsidiary.

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