Saudi investment will dominate PSX, SBP rate conferenc

Equity investors will be closely monitoring the Monetary Policy Committee (MPC) meeting of the State Bank of Pakistan on September 14 in anticipation of a 200 basis point increase in key interest rates and its potential effects on inflation and economic stability.
At the same time, industry analysts added, all eyes are on a Saudi Arabian delegation’s upcoming visit, which is set to reveal investment plans in Pakistan’s mining, mineral, and refinery sectors.
With a loss of 2,358 points or 4.95 percent during the most recent trading session on Friday (Sept. 1), the benchmark KSE-100 index saw its largest weekly point loss since Nov. 26, 2021. It had decreased by 2,375 points, or 5.11 percent, as of Nov. 26, 2021.
The KSE-100 index struggled with consistent pressure to the downside throughout August, which culminated to a 6.3pc drop that saw it settle at 45,002 points.
Due to soaring fuel costs and rising energy and petrol prices, investor sentiment suffered, which sparked countrywide business community protests. Throughout the month, pressure on the share market was maintained by a falling rupee, rising inflation, a sluggish economy, and a lack of encouraging indications.
The second month of the fiscal year saw inflation at a startling 27.4 percent, mostly due to the constant increases in energy prices, which caused consumer prices to soar out of control in August.
High-speed diesel (HSD) rates were raised by Rs18.44 per litre and petrol by Rs14.91 per litre, respectively, by the government. As a result, the cost of petrol rose to Rs305.36 per litre and the cost of HSD to Rs311.84 per litre. The rupee was down 1.46 percent, or Rs4.46, from the previous week’s closing price of Rs301, standing at Rs305.46 per $1.
Investors are anticipated to exhibit care in their market positions given the current circumstances. An expert at AKD Securities predicts that they will favour safer investments like those in the banking, HUBCO, PARCO, E&P (Exploration and Production), and power sectors.
The significant week-over-week decline in the KSE 100 index is primarily attributable to investors’ growing apprehensions regarding the upcoming monetary policy decision. Investors are worried that the SBP will raise policy rates significantly to combat inflation and stop the rupee’s ongoing depreciation, which has been fueled by recent increases in energy prices.
The average daily volume and value of traded securities for the week were 210 million shares and Rs. 8 billion, respectively. As of Friday’s end, insurers, foreign corporations, and overseas
Pakistanis together net purchased shares of equity worth $8 million, $2.63 million, and $1.17 million, respectively, according to a Topline Securities report.