KARACHI: The benchmark index of the Pakistan Stock Exchange (PSX) closed at 47,296 points on the last day of the week, up 1,111 points or 2.4 per cent, on a week-on-week basis.

According to Arif Habib Ltd, trading commenced on a positive note on Monday because the government was able to convince the Tehreek-i-Labbaik Pakistan to call off its protests. Moreover, a rebound in the rupee against the greenback, which settled at Rs170.01, also played a key role in improving sentiments.

A substantial reduction in international coal prices, which went down 34pc week-on-week, along with a 10pc narrowing of the trade deficit on a monthly basis further strengthened the sentiment.

Prime Minister Imran Khan’s announcement of a subsidy package of Rs120 billion for essential food items kept the positive momentum robust, although profit-taking took place briefly in a few shares, it added.

Sectors that contributed positively to the benchmark index included technology, which added 490 points, followed by fertiliser (136 points), refinery (115 points), oil marketing companies (36 points) and textile composite (33 points). Sectors that contributed negatively to the KSE-100 index were textile weaving (14 points) and paper and board (nine points).

Scrip-wise, positive contributors included Systems Ltd (241 points), TRG Pakistan (210 points), Meezan Bank Ltd (72 points), National Refinery Ltd (48 points) and Fauji Fertiliser Company Ltd (41 points). Meanwhile, shares that took away points from the benchmark index were United Bank Ltd (38 points), Lucky Cement Ltd (35 points) and Habib Bank Ltd (33 points).

Foreign selling in the outgoing week and amounted to $11.2 million as opposed to net sales of $2.7m in the preceding week. Major selling took place in the stocks belonging to commercial banking ($5.6m) and fertiliser ($1.4m) sectors.

As for the local front, biggest buyers remained individuals who purchased shares worth $14.5m, followed by insurance companies that bought stocks valuing $6.5m. The average daily volume clocked in at 430m shares, up 2.4pc from a week ago. The average value traded was $89m in the outgoing week, up 121pc from a week ago.

AKD Securities said in a research note the news flow relating to the International Monetary Fund (IMF) review would drive market sentiments in the near term.

Other key factors influencing the stock market performance include Pakistan’s reclassification into the MSCI Frontier Markets index from the MSCI Emerging Markets index. The change will take effect by the end of November.

The next monetary policy announcement is also due at the end of this month.

“We continue to advocate for thematic plays, which include banks (on monetary tightening), construction-driven sectors (cements and steel) and textile (on devaluations and strong export prospects),” it said.

Published in Dawn, November 7th, 2021