KARACHI: Trading in the outgoing week commenced on a positive note on the stock exchange as the index went up 531.1 points in the first session following the release of a favourable weekly inflation number.

Arif Habib Ltd said the stock market reacted positively to the news about a change at the helm of the Ministry of Finance. Furthermore, the rupee appreciated against the greenback and closed at 228.45, up 4.9 per cent week-on-week.

The real effective exchange rate (REER) clocked in at 94.5 for August versus 93.2 for July. Furthermore, Asian Development Bank committed $2 billion, which is expected to be mobilised by the end of this year.

However, the market sentiment became negative towards the end of week as the State Bank of Pakistan (SBP) reserves declined 4pc week-on-week and clocked in at $8bn. Yields on Pakistan’s international bonds maturing in 2022 and 2024 also increased during the week by 20-24 basis points. With Habib Bank Ltd coming under international scrutiny, the market sentiment was further dented.

As a result, the index closed at 41,129 points after gaining 508 points or 1.25pc from a week ago.

Sector-wise, positive contributions came from power generation and distribution (141 points), cement (107 points), technology and communication (92 points), oil and gas exploration (65 points) and fertiliser (40 points).

Whereas, sectors that contributed negatively to the benchmark were commercial banking (217 points) and close-end mutual fund (one point).

Scrip-wise, positive contributors were the Hub Power Company Ltd (139 points), TRG Pakistan Ltd (122 points), Pakistan Petroleum Ltd (55 points), Lucky Cement Ltd (49 points) and Oil and Gas Development Company Ltd (40 points).

Meanwhile, negative contributors were Habib Bank Ltd (213 points), Meezan Bank Ltd (34 points), Mari Petroleum Company Ltd (32 points), Systems Ltd (28 points) and Bank AL Habib Ltd (12 points).

Published in Dawn, October 2nd, 2022