KSE-100 rallies over 1,100 points as investors cheer single digit interest rate

By
Business Desk
|
— AFP/File
— AFP/File
  • Market regains ground lost in the last few sessions, with vital support coming from clarity on policy rate.
  • Benchmark KSE-100 index surges by 1,120.15 points to close at 44,366.86 points.
  • Shares of 374 companies were traded during the session.


KARACHI: The Pakistan Stock Exchange (PSX) on Wednesday surged over 1,100 points to regain the ground lost in the last few sessions, with vital support coming from clarity on policy rate.

The State Bank of Pakistan (SBP) on Tuesday hiked the benchmark policy rate by 100 basis points to 9.75% to counter inflationary pressures, address the current account deficit, and ensure that growth remains sustainable.

The market players cheered the news that the central bank did not raise the interest rate by a massive per cent and kept it in the single digits.

Benchmark KSE-100 index intraday trading curve. — PSX data portal
Benchmark KSE-100 index intraday trading curve. — PSX data portal

Moreover, the assurance from SBP Governor Dr Reza Baqir that the current account deficit will decrease gradually strengthened the investors’ confidence and the benchmark index once again crossed the 44,000-point mark.

Today, the benchmark KSE-100 index surged by 1,120.15 points, or 2.59%, to close at 44,366.86 points.

A report from Arif Habib Limited noted that the benchmark KSE-100 index stayed in the bullish momentum throughout the day as the market celebrated interest rate not entering into double digits and SBP’s forward guidance that the interest rate would remain "broadly unchanged" in the near term.

“The market opened with a positive note as traders took an aggressive bet on cement, steel, and technology stocks,” it said, adding that on the institutional front, buying activity was witnessed across the board from the mutual funds.

The brokerage house said: “Moving forward, an upcoming auction of treasury bills will play a vital role to set the direction of the market.”

Sectors contributing to the performance included cement (+263 points), technology and communication (+196 points), exploration and production (+110 points), oil marketing companies (+74 points) and chemical (+62 points).

Shares of 374 companies were traded during the session. At the close of trading, 305 scrips closed in the green, 60 in the red, and 9 remained unchanged.

Overall trading volumes soared to 398.09 million shares compared with Tuesday’s tally of 212.35 million. The value of shares traded during the day was Rs11.6 billion.

WorldCall Telecom was the volume leader with 53.3 million shares traded, gaining Rs0.40 to close at Rs2.20. It was followed by Byco Petroleum with 34.6 million shares traded, gaining Rs0.76 to close at Rs6.75, and Hascol Petroleum with 19.8 million shares traded, gaining Rs0.53 to close at Rs6.54.