Equity market closes lower over likely policy rate hike

Equity market closes lower over likely policy rate hike

Equity market closes lower over likely policy rate hike

China lockdowns, rate hike fears batter stock markets

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KARACHI: The Pakistan Stocks observed a range bound secession on Wednesday, where the KSE-100 Index remained volatile throughout the day due to expectation of a rate hike in the upcoming policy as Kibor reached a 13-years high.

An analyst at Arif Habib Limited said that a rally in the refinery sector was witnessed due to rumors regarding the approval of the refinery policy.

“The last trading hour witnessed profit selling across the board which resulted in the secession ending in the red zone. Main board activity remained dull although hefty volumes were witnessed in the 3rd tier stocks,” he added.

The Pakistan Stock Exchange KSE-100 shares Index shed 0.62 per cent, or 284.38 points, to close at 45,533.30 points. The KSE-30 shares Index shed 1.72 per cent, or 305.68 points, to close at 17,427.11 points.

The ready market volumes stood at 223.82 million shares compared with the turnover of 210.20 million shares in the last trading session.

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An analyst at Pearl Securities said that the market observed yet another sell-off session in the absence of any positive trigger.

“The Election Commission of Pakistan (ECP) indicated that holding general elections may not be possible before May 2023, thus, fueled the chaos on a political front. Additionally, Pakistan’s fiscal deficit has surged to 4 per cent of GDP during the first nine months of fiscal year 2022 amid higher subsidies and grants,” he added.

Going forward, the analysts expect the market to observe mixed sentiments ahead of week-long Eid holidays and ongoing political uncertainty. Hence, suggesting investors book profits at a higher level.

The companies which reflected the highest gains included Bhanero Tex up Rs67.89 to close at Rs1,537.89/share, and Sapphire Tex up Rs45.15 to close at Rs1,185/share.

The companies that reflected the most losses included Nestle Pakistan down Rs49.98 to close at Rs5,800.01/share, and Shield Corp down Rs16.84 to close at Rs266.50/share.

The highest volumes were witnessed in Cnergyico PK with a turnover of 63.68 million shares. The scrip gained 56 paisas to close at Rs6.79/share, followed by Pak Refinery with a turnover of 26.16 million shares. It gained 98 to close at Rs17.17/share.

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G3 Technologies remained the third with a turnover of 11.27 million shares. It shed 3 paisas to finish at Rs11.69/share.

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