KARACHI: Trading on the stock market commenced in the outgoing week on a positive note and the momentum continued throughout the week, thanks to the premier’s visit to China.
Arif Habib Ltd said another reason for the bullish trend was the country’s trade deficit narrowing down by 26.59 per cent to $11.47 billion in the first four months of the current fiscal year.
The rupee was slightly up against the greenback as it closed at 221.95, higher by 0.2pc on a weekly basis.
In addition, reserves of the State Bank of Pakistan increased to $8.9bn, up by $1.5bn, reflecting the inflows from Asian Development Bank.
However, the stock market went down towards the end of the week owing to an attack on former premier Imran Khan.
As a result, the index closed at 41,856 points after gaining 716 points or 1.7pc from the preceding week.
Sector-wise, positive contributions came from technology and communication (168 points), oil and gas exploration (144 points), fertiliser (107 points), power generation and distribution (85 points) and cement (66 points).
Sectors that contributed negatively were insurance (10 points), food and personal care products (nine points) and paper and board (eight points).
Meanwhile, negative contributions came from Meezan Bank Ltd (31 points), Nestle Pakistan Ltd (15 points), Habib Bank Ltd (12 points), Pakistan Services Ltd (12 points) and Adamjee Insurance Company Ltd (10 points).
Foreign selling was witnessed during the outgoing week as it clocked in at $1.58 million versus a net purchase of $0.97m in the preceding week.
According to AKD Securities Ltd, the stock market is expected to remain range-bound in the near future as pressure on the rupee continues to be a cause for concern.
“Furthermore, the long march, and the ensuing political uncertainty, is expected to keep market movements in check,” it added.
Published in Dawn, November 6th, 2022
