Closing Bell: SBP's policy rate hike irks an already disoriented equity market

April 1, 2019 (MLN): The startling element in today’s stock market performance was the unexpected reaction of investors to an expected hike in policy rate. The recent rate hike in interest rates by 50 bps took its toll on an already disoriented equity market, causing the benchmark index to close at 38,354 mark after losing 294 points.

Moreover, an abrupt increase in the petroleum prices added to the misery as it kept the equity market at bay.

The Fertilizer, E&P, Commercial Banks and Cement Sectors emerged as the worst performers today as they pulled the index down by 248 points.

The major scrips that contributed in the index’s performance were PPL (-1.63%), LUCK (-2.41%), ENGRO (-1.40%), BAHL (-1.88%) and DAWH (-2.59%).

The index observed trading of 39 million shares of the listed scrips, having a total value of Rs. 2.5 billion. Within a range of 438 points, the index touched an intra-day high of 38,649 points and an intra-day low of 38,211 points. 

Riding within the same boat, the broader KSE All Share index lost around 264 points and closed at 28,015 points. It traded nearly 65 million shares, having a value of Rs. 2.8 billion.

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