KARACHI: Stocks at the local capital market ended lower on Monday, led by the banking sector after the State Bank of Pakistan raised the minimum deposit rate on savings accounts to 6 percent from 5 percent.
The decision by the central bank on Friday came at the same time it announced its monetary policy for the next two months, keeping the key policy rate flat at 12 percent.
"This move will have a significant impact on banks' profitability, as savings deposits account for nearly 38 percent of all bank deposits, and 52 percent of the total number of deposit accounts," said Sayem Ali, economist at Standard Chartered Bank.
The Karachi Stock Exchange (KSE) benchmark 100-share index fell 0.2 percent, or 28.72 points, to end at 13,770.70.
Volume was 261 million shares, compared with 380 million shares traded on Friday.
Among banking stocks, NIB Bank ended 4.5 percent lower at 2.55 rupees, the National Bank of Pakistan fell 3.5 percent to close at 46.30 rupees and Bank Al Falah closed 2.1 percent lower at 15.75 rupees. (Reuters)