Stocks down as TRG hit on eve of monetary policy meet

With tech firm TRG leading the losses, the capital market ended lower in a roller-coaster session ahead of monetary policy meeting seen dominated by inflation hawks, traders said.

Pakistan Stock Exchange's (PSX) benchmark KSE-100 Shares Index shed 83.92 points or 0.18 percent to close at 46,110.50 points, exploring a day high of 46,293.08 points and a low of 45,728.54 points.

Zafar Moti, former director PSX, said the market movement was down because of sexual harassment allegations against the CEO of a listed company.

“There was panic selling and lower locks were recorded; however, some particular shares remained buoyed. The overall situation was down,” he said.

Moti said 46,000 points’ level was maintained, which was a good sign.

“The market is likely to remain in the same area tomorrow, while investors have a bad feeling about the monetary stance as policy rate is seen going up by 75-100 basis points today (on Friday),” he said.

Arif Habib Corp’s chief analyst Ahsan Mehanti said tocks closed lower amid slumping global equities and crude oil markets.

Foreign outflows, dismal data on LSM (large-scale manufactuing growth at 1.2 percent in September 2021, and uncertainty over SBP (State Bank of Pakistan) policy announcement weighed on the market, Mehanti said.

Following the benchmark’s suit, KSE-30 Share Index dropped 57.04 points or 0.32 percent to settle down at 17,894.99 points.

Ready market volumes increased 25 million shares to 263.55 million from 238.49 million, while the trading value slipped to Rs8.47 billion from Rs10.12 billion.

Market capital increased to Rs7.975 trillion from Rs7.873 trillion. Out of 340 active shares, 150 were gainers, 166 losers, while 24 were neutral.

Topline Securities in its market wrap said TRG dragged the index lower by 101.51 points in a volatile session and closed the day at its lower lock as investors offloaded the stock in the wake of a sexual harassment scandal involving the company’s owner, Zia Chisti.

Commercial banks continued to see investor interest due to expectations of an interest rate hike in the MPS (Monetary Policy Statement), the brokerage said.

It added that consequently, MEBL, MCB, UBL, and HMB cumulatively added 74.12 points to the benchmark index.

Unilever Foods was top gainer, up Rs1,099.99 to Rs19,999.99/share, followed by Sapphire Fiber, up Rs53 to Rs893/share.

Losing Rs94.95 to settle down at Rs2,405.05/share, Colgate Palm ended up as the worst loser of the day, followed by Sapphire Textile, down Rs42.68 to Rs1,206.39/share.

JS Research in a note said the market started the day in the negative zone with lackluster volumes as participants chose to wait for SPB’s MPS announcement, start of the rollover week and lack of clarity on the IMF programme.

Key triggers are awaited for the index to choose a direction, the brokerage added.

Merit Pack (R) led volumes chart with 42.18 million shares, while the second highest traded stock was Ghani Global Holdings with 29.06 million.

Stocks that recorded significant turnover included Service Fabrics, TPL Properties, Fauji Cement, Byco Petroleum, Telecard Limited, TPL Corp Ltd, Fatima Fertiliser and WorldCall Telecom.

Turnover in the future contracts decreased to 66.67 million shares from 71.94 million shares on Wednesday.