KARACHI – The local bourse underwent a slump of 12.12 points or 0.10 percent on Friday primarily due to, what analysts said, investors’ cautiousness a day ahead of the monetary policy statement (MPS) by the State Bank of Pakistan.
The KSE 100-share index closed at 11,552.13 points against 11,564.25 points, the previous day. The day saw the intraday high and low, respectively, at 11,636.89 and 11,531.65 points, while the day’s turnover at the ready-counter was recorded at 66.38 million against Thursday’s 62.66 million.
Market capitalisation remained almost the same, at Rs 3.081 trillion, compared to Rs 3.082 trillion a day earlier. Lotte Pakistan PTA topped the list of volume leaders by marking a share trading of 12.195 million and a 0.05-paisa per share gain closing at Rs 15.98. Other volume leaders included Nishat (Chunian), Azgard Nine, National Bank of Pakistan, Fauji Fertiliser Bin Qasim, Bank of Punjab, Engro Corporation, Fatima Fertiliser Company, NIB Bank and Pakistan Oilfields with a respective turnover of 4.2 million, 3.9 million, 3.0 million, 2.8 million, 2.5 million, 2.5 million, 2.3 million, 2.3 million and 2.0 million shares.
The future market also remained down and closed at 13.34 million shares against the previous 22.13 million, exhibiting a decline of 879 million shares over the previous day. “Bearish activity and thin volumes were seen as investors remained cautious ahead of SBP monetary policy announcement this Saturday,” viewed Arif Habib Investments Director Ahsan Mehanti.
However, Mehanti said that positive remarks from Islamabad regarding resumption of strategic dialogue with the US envoy, a renewed foreign interest in oil, banking and fertiliser scrips, rising global capital markets and higher global commodity prices kept investors’ sentiment positive. He said that this was despite investors’ concern over depreciation of rupee against dollar after the State Bank lifted its ban from the foreign currency forward cover.
While, investors, at the volatile equity market, are cautiously looking towards the central bank which is due to reveal its monetary stance for the next two months today (Saturday), many analysts believe that the regulator is likely to keep interest rate unchanged as it did last time. The SBP had kept the cost of borrowing, for local business, static at 14 percent in its last Monetary Policy Statement on January 29.
Analysts believe that relatively low government borrowings, improved fiscal reforms, easing inflationary pressures and narrowing down of the current account deficit will propel the regulator to keep the interest rate static.
