Tuesday Nov 23, 2021
KARACHI: The Pakistan Stock Exchange (PSX) extended losses for the second consecutive day on Tuesday, recording a loss of nearly 800 points due to a higher than expected increase in the policy rate, as investors feared it would raise the cost of the capital big time.
Despite the much-awaited news that Pakistan and the International Monetary Fund (IMF) had reached a staff-level agreement, the market stayed under pressure.
The bears were seen dominating the market throughout the day, as jittery investors offloaded their positions amid foreign selling.
Appreciation in rupee against the US dollar also failed to entice the market participants as they resorted to selling.
At close, the benchmark KSE-100 index had plunged by 796.48 points, or 1.74%, to close at 44,948.52.
A report from Arif Habib Limited noted that once again the bears ruled over the bulls as investors were unable to digest the hawkish stance of the last MPC which resulted in double-digit six-month KIBOR.
“Hefty increase in the finance cost of leveraged businesses will eventually lower profits as the major portion of borrowing appear from KIBOR led lending,” it stated.
The brokerage house added that the second day of roll-over week became under pressure as investors took a cautious side and opted for squaring of roll-over positions.
Shares of 358 companies were traded during the session. At the close of trading, 49 scrips closed in the green, 297 in the red, and 12 remained unchanged.
Overall trading volumes rose to 264.6 million shares compared with Monday’s tally of 261.9 million. The value of shares traded during the day was Rs9.7 billion.
TRG Pakistan was the volume leader with 19.6 million shares traded, losing Rs7.16 to close at Rs88.35. It was followed by WorldCall Telecom with 17.2 million shares traded, losing Rs0.06 to close at Rs2.17, and Byco Petroleum with 13.8 million shares traded, losing Rs0.31 to close at Rs6.52.