KARACHI: The stock market inched up a little in the outgoing week as the passage of the mini-budget ended uncertainty about the future of reforms and dollar inflows.

According to Arif Habib Ltd, the initial positive momentum turned negative on the back of a delay in the review of the International Monetary Fund (IMF) programme. In addition, a sudden spike in the number of Covid-19 cases raised the investors’ concerns about the potential imposition of restrictions and smart lockdowns. However, the sentiment once again turned positive when parliament approved the Finance Supplementary Bill or mini-budget despite strong protest by the opposition.

Moreover, the latest data on the automobile industry for December depicted an annual increase of 96 per cent and monthly growth of 46pc. Similarly, a hike in Arab Light prices to $86.16 per barrel generated activity in the exploration and production sector. In addition, the rupee appreciated to 176.07 against the dollar.

As a result, the stock market closed at 45,763 points after gaining 418 points from a week ago. This translates into an increase of 0.9pc.

Sector-wise, positive contributions came from commercial banking (328 points), miscellaneous (54 points), chemical (50 points), power generation and distribution (47 points) and oil and gas exploration (37 points).

Sectors that contributed negatively to the benchmark were cement (67 points), technology and communication (64 points) and fertiliser (26 points).

Scrip-wise, positive contributors were Habib Bank Ltd (87 points), MCB Bank (73 points), Pakistan Services Ltd (57 points), The Hub Power Company Ltd (43 points) and Colgate-Palmolive Pakistan Ltd (39 points). Negative contributions to the index came from Systems Ltd (53 points), Lucky Cement (38 points) and Engro Corporation (33 points).

Foreign investors remained net buyers in the outgoing week, with net purchases clocking in at $0.53 million versus a net buy of $24.2m in the preceding week.

Major buying was witnessed in technology ($0.5m) and power ($0.4m) sectors. On the local front, selling was reported by mutual funds ($9.9m) and companies ($2.4m). The daily average volume clocked in at 356m shares, up 12pc week-on-week, while the average value traded settled at $51m, down 12pc from a week ago.

According to AKD Securities, the monetary policy statement on Jan 24 will determine the market direction along with the progress on the IMF programme. “We continue to advocate for gradual accumulation on any weakness,” it said, adding that its preferred sectors include banking, cement, fertiliser, consumer and a select number of stocks within the technology segment.

Published in Dawn, January 16th, 2022

Opinion

Editorial

Wise counsel
Updated 04 Jul, 2022

Wise counsel

Fuelling the fires of communalism for petty political gains is dangerous and can have a long-lasting impact on India’s stability.
Hazardous waste
04 Jul, 2022

Hazardous waste

GIVEN we have not yet developed streamlined systems for managing locally produced hazardous waste, we are inviting...
Mob ‘justice’
04 Jul, 2022

Mob ‘justice’

OVER the past few days, a string of deadly incidents has been reported from Karachi in which enraged mobs have...
Skyrocketing prices
Updated 03 Jul, 2022

Skyrocketing prices

Some sellers are seeking to take advantage of the prevailing disorder by creating artificial shortages or jacking up prices.
Flooding alert
03 Jul, 2022

Flooding alert

THE Gilgit-Baltistan government has issued an alert about the possible flooding of areas along river banks and...
Assaulting journalists
03 Jul, 2022

Assaulting journalists

ANOTHER day, another citizen roughed up for speaking his mind. The assault on veteran journalist Ayaz Amir by...