KSE-100 makes gains despite monetary policy jitters

The Pakistan Stock Exchange (PSX) posted modest gains during the pre-monetary policy announcement session, finishing the trading week in the green.

Investors looked for shares at attractive valuations after sustained selling for the last two days opened some windows.

The State Bank of Pakistan (SBP) was set to announce a new benchmark interest rate towards the end of the session, where most believed the policy rate would be increased.

Later, in line with market expectations, the central bank increased its benchmark policy rate by 150 basis points to 8.75% for the next two months.

News that technology exports were up 29% (year-on-year) in October lent support to the technology sector.

The stock market kicked off trading on a positive note and remained in the green for most of the first session. However, it receded after trading resumed in the second half, and the KSE-100 index dived but losses were recouped towards the end of the session.

At close, the benchmark KSE-100 index had risen by 378.91 points, or 0.82%, to close at 46,489.41.

Shares of 356 companies were traded. At close of trading, 215 scrips closed in the green, 123 in the red, and 18 remained unchanged.

Overall trading volumes rose to 304.2 million shares compared with Thursday’s tally of 263.5 million. The value of shares traded during the day was Rs12 billion.

Ghani Global Holdings was the volume leader with 33.9 million shares traded, gaining Rs0.45 to close at Rs33.68. It was followed by Service Fabrics with 17.9 million shares traded, gaining Rs0.06 to close at Rs12.93, and First National Equities with 14.85 million shares traded, gaining Re1 to close at Rs11.23.

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