KARACHI: Stocks suffered losses for the fourth straight session on Wednesday, driven by rumours about a steep hike in the interest rates, economic uncertainty and unrelenting rupee depreciation.

The market witnessed a sharp drop after rumours circulated that the State Bank of Pakistan is set to convene an emergency meeting in which it is expected to raise interest rates by up to 300bps, noted JS Global in its daily report.

The benchmark KSE-100 shares index shed 525.86 points, or 1.12pc, closing at 46,244.56 points. The KSE-30 shares index dropped 199.93 points, or 1.20pc, at 16,420.76 points.

An analyst at Arif Habib Ltd explained that the bearish session was due to rupee depreciation and political upheaval.

“Inflation and an anticipated interest rate hike are among the reasons for the market decline,” he added.

The trading volume dipped to 200.28m shares from 217.85m shares the previous trading session.

Stocks contributing significantly to the trading volume included WorldCall Telecom (16.32m shares), K-Electric (12.42m shares), Dewan Motors (12.10m shares), Nishat Chunian (9.76m shares) and Pakistan Petroleum (7.88m shares).

Of the 327 active scrips, 70 advanced, 240 declined and 17 remained uncha­nged.

Companies registering the biggest increases in their share prices in absolute terms were Sapphire Fibre (Rs78), Sapphire Textile (Rs77.89), Bata Pakistan (Rs76.01), Lucky Core Industries (Rs7.55) and Murree Brewery (Rs6.30).

Sectors contributing negatively to the benchmark index included power generation and distribution (111.23 points), oil and gas exploration (90.40 points) and fertiliser (52.87 points).

Companies that recorded the biggest declines in their share prices in absolute terms Mehmood Textile (Rs54.50), Mari Petroleum (Rs20.92), Atlas Battery (Rs18.58), Abbott Laborat­ories(Rs18.48), and Shahmurad Sugar (Rs12.86).

Foreigners remained active buyers and picked shares worth $0.15m.

Published in Dawn, August 31st, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Yearly trouble
Updated 25 Oct, 2024

Yearly trouble

Both Pakistan and India need a strategy that not only penalises harmful practices but also provides long-term solutions.
Countering cybercrime
25 Oct, 2024

Countering cybercrime

THE new National Cyber Crime & Investigation Authority appears to have landed in limbo, with the authorities...
Controversial guest
25 Oct, 2024

Controversial guest

INDIAN preacher Dr Zakir Naik is not known for his subtle approach to faith. Controversies have surrounded him for...
Curtain call
Updated 24 Oct, 2024

Curtain call

There is hope that under Justice Afridi, SC can move beyond the discord and heal the fractures that developed under CJP Isa’s watch.
IMF’s estimate
24 Oct, 2024

IMF’s estimate

THE IMF’s economic growth projection of 3.2pc for Pakistan falls short of the 3.5pc target that the government has...
Religious exchanges
24 Oct, 2024

Religious exchanges

STRAINED relations between Pakistan and India prevent followers of different faiths from visiting sacred sites on ...