Equity market erodes by 1,335 points on interest rate hike, rupee devaluation


KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) eroded by 3.3 percent or 1,335 points on Monday after unexpected interest rate hike and rupee devaluation.




The index closed at 39,160 points as against 40,496 points showing a decline of 1335 points.

Analysts at Arif Habib Limited said as an aftermath of interest rate hike by SBP on Friday and rupee’s slippage the same day and today caused the market to panic and nose dive significantly.

The market went down by 1481 points during the session and closed -1335 points in the end.

All the blue chips were seen trading at or near lower circuits irrespective of the sector and even the scrips that were believed to take a positive cue from the interest rate hike saw selling pressure.

Data release on Chemical sector’s margins also failed to convince the investors to take a bet and both EPCL and LOTCHEM, which topped charts in the last few sessions saw anemic level of activity.

Most of the blue chips saw low volumes today and the prices were seen declining more rapidly.

Last half hour showed healthy activity in banking sector stocks that resulted in HBL and UBL stock prices to jump.

Sectors contributing to the performance include Fertilizer (-277 points), Banks (-234 points), Cement (-147 points), O&GMCs (-114 points) and Power (-103 points).

Volumes declined significantly from 271 million shares to 164 million shares (-39 percent DoD).

Average traded value also increased by 73 percent to reach US$ 47 million as against US$ 173 million.

Stocks that contributed significantly to the volumes include BOP, KEL, LOTCHEM, UBL and POWER reflecting 39 percent of total volumes.

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