KARACHI: Pakistani stocks saw a session of profit-taking on the first day of the week amid concerns over the monetary policy announcement expected on Tuesday, brokers said.
“During the day, investor interest remained low, due to the upcoming mini-budget, which led the index to close below the psychological barrier of 43,000 points, said a Pearl Securities analyst.
“Cumulatively, the tech, banking and E&P sectors have eroded 330 points of the index. “
The Pakistan Stock Exchange’s KSE-100 index fell 1.2 percent or 519.41 points to close at 42,876.37 points. The KSE-30 stock index fell 1.31%, or 221.32 points, to close at 16,679.45 points.
No less than 331 scripts were active, of which only 65 advanced, 250 declined and 16 remained unchanged. Market ready volumes stood at 150.38 million shares, compared to sales of 179.17 million shares at the last trading session.
Ahsan Mehanti of Arif Habib Corporation said the shares closed lower due to uncertainty surrounding central bank policy tightening on Tuesday and the weakness of the rupee.
“[The] flock [the] National savings rates, rising government bond yields, likely mini-budget announcements for the IMF’s program resumption and uncertain relations between the Pak and the United States have played a catalytic role in the bearish close.
A Topline Securities analyst said the market opened on a slightly positive note; however, the index came under pressure and traded negatively throughout the day. “Investors are awaiting the monetary policy statement, which is expected tomorrow.”
Looking ahead, analysts expect the market to take direction after the monetary policy announcement and suggest investors adopt the sell-on-force strategy during the current week.
The companies which reflected the highest gains included Gatron Industries, up Rs 34.22 to close at Rs 524.99 / share; and Pakistan Tobacco, up Rs 30 to close at Rs 1,100 / share.
The companies, which reflected the most losses included Nestlé Pakistan, down Rs 333.74 to close at Rs 5,356.25 / share; and Bata Pakistan, down Rs 93.38 to close at Rs 1,746.62 / share.
The highest volumes were recorded in WorldCall Telecom with turnover of 18.33 million shares. The script lost 18 paisas to close at Rs 1.7 / share; followed by Byco Petroleum with a turnover of 7.3 million shares. He lost three paisas to close at Rs5.65 / share. Fatima Fertilizer remained in third place with a turnover of 7 million shares. He lost 24 paisas to finish at Rs34.76 / share.