KSE index falls by 85.85 points ahead of monetary policy announcement

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KARACHI: The Karachi Stock Exchange’s (KSE) benchmark 100-index fell for the third consecutive session by 85.85 points to 16,701.69 points on Tuesday on uncertainty regarding the monetary policy announcement, said dealers. Ahsan Mehanti, an analyst at Arif Habib Corp, said there are a few reasons for decline in stocks including profit-taking in some stocks.

Although the State Bank of Pakistan has announced December 14 as the date for the monetary policy announcement, investors are still uncertain about it. “If major cut is announced it will help the market positively,” said Mehanti. “Investors are waiting for the policy announcement and will support the market after that.”

Concerns over economic uncertainty, fall in the global commodities and uncertainty over the country’s stance for the new programme of the International Monetary Fund (IMF) affected the sentiment, despite hopes for a rate cut in the next monetary policy, he said.

The KSE-100 index declined by 85.85 points, or 0.51 percent, to 16,701.69 points against 16,787.54 points recorded in the last session. The index, at one time, reached the high of 16,848.85 points but could not sustain it, while the low was recorded at 16,690.13 points. The KSE-30 index fell by 58.05 points, or 0.43 percent, to 13,542.02 points in the session. Shares turnover declined by 62 million to 127.04 million shares from 189.10 million shares, whereas value fell to Rs3.48 billion against Rs4.06 billion recorded in the last session.

Mohammad Rizwan, senior manager equity sales at Topline Securities (Pvt) Ltd, said that another dull session was witnessed in the market as investors’ preferred to book profit rather than taking fresh positions. “Declining value of the rupee against the dollar also affected the market sentiment. Trading volume squeezed to mid-cap stock, which includes JSCL, MLCF and SNGPL. No outcome of the Economic Coordination Committee (ECC) meeting dragged Engro Corporation in the negative zone,” he said. Highest increase was recorded in the shares of Unilever Pakistan, which increased by Rs96.83 to Rs9,897.83 per share followed by Sanofi-Aventis Pakistan, which rose by Rs16 to Rs368 per share.

Major decline was witnessed in the shares of Bata (Pak), which fell by Rs80 to Rs1,530 per share followed by Nestle Pakistan Ltd that declined by Rs40 to Rs4,800 per share.

Stocks that recorded significant turnover included Jahangir Siddiqui Co, Maple Leaf Cement, Sui Northern Gas, Fauji Cement and Engro Foods Ltd. Jahangir Siddiqui Co was the volume leader with a turnover of 13.89 million shares as it lost 57 paisas to close at Rs17.26 per share followed by Maple Leaf Cement with a turnover of 8.85 million shares as it lost 12 paisas to end at Rs13.79 per share.

Shares turnover in the futures market increased to 6.84 million shares from 6.43 million shares traded in the previous session. Of 369 companies’ shares traded, 95 advanced, 254 declined and 20 remained unchanged.

Unilever Pak Rs96.83
Closing Rs9,897.83

Sanofi Aventis Rs16.00
Closing Rs3,68.00

Pak Ind Con Rs11.42
Closing Rs239.88

Bata Pak Rs80.00
Closing Rs1,530.00

Nestle Pak Rs40.00
Closing Rs4,800.00

Shezan Ind Rs22.00
Closing Rs433.00

 

Courtesy: The News