KARACHI, July 29: Stocks remained under pressure ahead of the announcement of the monetary policy by the State Bank of Pakistan on Tuesday, but finished well above the session’s lows on late covering purchases at the lower levels in some of the leading oil and bank shares.

The KSE 100-share index shed another 130.30 points at 10,448.19.

The underlying sentiment was, however, highly nervous amid conflicting rumours about increase in the discount rate in the monetary policy, which would certainly add to the borrowing costs of investors.

But late recovery indicates that some of the well-informed among the leading investors may have found cue to the magic hike figure and covered positions on those counters which are to benefit from the new monetary policy, some others said.

“Any increase above the 100 basis points will significantly change the valuation and hit those who are depending on borrowing to meet their working capital needs,” said a leading analyst.

On the forward counter, the leveraged sector would be hit hard if the hike is above this figure as it would be pretty difficult for investors to absorb its negative fallout, he added.

After early falling by 325 points or three per cent at 10,253.40 on spillover selling from Monday’s session, the KSE 100-share index finally managed to end at 10,446.19, off 130.30 points or three per cent on late short-covering in some of the pivotals.

The KSE 30-share index also fell by 132.52 points at11,864.05.

OGDC, MCB Bank, Engro Chemical, Arif Habib Securities, Bank of Punjab were up, but United Bank fell despite interim dividend of 15 per cent.

The National Bank followed it on renewed selling. Cement shares again remained under pressure despite higher exports as investors took profits at the higher levels followed by higher taxes, notably excise duty and sale tax.

However, the market will react to the new monetary policy tomorrow after its details will be available, but it would well prove a double-edged weapon for the share business, said a broker.

Minus signs again dominated the list under the lead of Shell Pakistan after having omitted the dividend and JS & Co, off by Rs20.40 and Rs18.58, followed by Attock Refinery, National Refinery, Al-Ghazi Tractor, Pakistan Oilfields, Mari Gas, Attock Petroleum, EFU General, Adamjee Insurance, Habib Bank and JS Global, which suffered a fall, ranging from Rs8.03 to Rs12.65. Siemens Pakistan and Dreamworld, leading among the gainers, were up by Rs50 and Rs9.62.

Others rose modestly under the lead of Engro Chemical, Fauji Fertiliser, Packages,