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Investors cautious before MPC, KSE-100 ends below 43,000

Investors cautious before MPC, KSE-100 ends below 43,000

The benchmark KSE-100 Index extended losses from the previous session, as the bourse ended the first day of the week with a fall of 519 points, below the 43,000 level for the first time since March, while volumes and value declined from the previous session on Monday.

During the day, the index hit an intraday low of 42,806.68, recording a downward movement of 589.10 points.

At close on Monday, the index settled lower by 519.41 points or 1.20% at 42,876.37.

“Investors adopted a cautious approach ahead of the Monetary Policy announcement on Tuesday,” said Capital Stake in a post-market comment. “Moreover, news of the announcement of mini-budget before Parliament next week also kept investors away from the market,” it added.

Meanwhile, AKD Securities in its report was of the view that the market is likely to remain range-bound in the coming months until the transmission of fiscal and monetary adjustments begin to reflect in underlying numbers, in our view.

“The threat of new COVID-variant, “Omicron” and coldest winter in EU increasing COVID caseload in the region has put downward pressure on global commodities (TRJ Commodity Index down 6.6% from peak), possibly shortening the timeline for complete transmission of macro adjustment into economic metrics.

“With developments on macro front remaining fluid, we advocate investors taking a longer-term horizon in mainboards, preferring value overgrowth while limiting tactical adjustments.”

KSE-100 ends week on a negative note

On the economic front, oil production witnessed an uptick of 1.4% WoW, clocking in at 76,391 bopd (12 week high). Similarly, gas production increased by 2.9% WoW, settling at 3,403mmcfd (8 week high).

Sectors dragging the benchmark index downwards included technology and communication (152.01 points), banking (80.09 points), and oil and gas exploration (76.13 points).

Volume decreased clocking in at 150.39 million on the all-shares index, down from 179.17 million on Friday. The value of shares traded also declined to Rs5.27 billion on Monday.

WorldCall Telecom was the volume leader with 18.33 million shares, followed by Byco Petroleum with 7.30 million shares, and Fatima Fertilizer at 7.00 million shares.

Shares of 331 companies were traded on Monday, of which 65 registered an increase, 250 recorded a fall, and 16 remained unchanged.

Source: Business Recorder

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