Karachi—The KSE-100 Index gained yet another 281 points gradually getting closer to its psychological target of 40,000 levels. The market players are pinning hopes for a further cut in interest rate as the governor State Bank of Pakistan Ashraf Mahmood Wathra will unveil Monetary Policy Decision on Saturday, July 30, 2016. When the market closed at a trading volume of 224, the index closed in green at 39,429 levels here on Wednesday.
The top performer of the day was Dewan Cement with a trading volume of 24 million shares to their credit, however the Dewan cement was closed at Rs15.40 with a dip of Rs1 at the close. Other two top performers were including Dewan Motor and Agri-tech Ltd with a trade of 17 million and 14 million respectively. Meanwhile, the international oil prices continued their decline down to $42.32/bbl. In the absence of any major news flow, more downside is possible as investors remain focused on excess supply and weak demand. However, inventory data today will provide additional clues about demand.
The market expectations however were inclined towards rate cut, reflected by softer long-term yields since Jun-2016 (45-55bp decline).