KARACHI: The stock market experienced a notable upward trend throughout the outgoing week on the back of the results season coupled with some positive economic developments.

Arif Habib Ltd said a key driver behind the market rally was China’s decision to extend a $2.4 billion loan repayment period without raising its mark-up, reflecting a positive gesture of support from a major economic partner.

Additionally, the market sentiment was bolstered by the announcement of a collaboration among four Pakistani state-owned enterprises and Saudi Arabia to execute a substantial $10bn refinery project within Pakistan.

As a result of these encouraging developments, the stock market managed to surpass the 47,000-point level, marking a significant milestone since November 2021.

Meanwhile, the rupee appreciated during the outgoing week against the dollar and closed at 286.45 after gaining 0.13 per cent week-on-week.

Overall, the market closed at 47,077 points, soaring by 1,156 points or 2.5pc from a week ago.

Sector-wise, positive contributions came from banking (602 points), exploration and production (175 points), power (137 points) and oil marketing (113 points).

Sectors that contributed negatively were fertiliser (44 points), automobile parts (seven points) and tobacco (six points).

Scrip-wise, positive contributors were Habib Bank Ltd (211 points), the Hub Power Company Ltd (115 points), Oil and Gas Development Company Ltd (108 points), United Bank Ltd (101 points) and Meezan Bank Ltd (93 points).

Meanwhile, negative contributions came from Dawood Hercules Corporation Ltd (39 points), Engro Corporation Ltd (25 points), Systems Ltd (nine points), Thal Ltd (seven points) and Pakistan Tobacco Company Ltd (six points).

Foreign buying continued in the outgoing week and clocked in at $2.8 million versus a net purchase of $5.4m a week ago. Major buying was witnessed in exploration and production ($1.3m) and banks ($1.1m). On the local front, selling was reported by mutual funds ($6m) and insurance companies ($1.8m).

AKD Securities said the stock market is likely to maintain its positive movement owing to the news relating to the Chinese loan rollovers, fresh funding from Gulf countries and other bilateral allies, chances of political stability post-general elections towards the end of year and a possible re-entry into a bigger loan programme with the International Monetary Fund (IMF).

“However, it’s imperative to see (in) which direction the policy rate goes in the July 31 monetary policy committee meeting, which will further determine market sentiments,” it said.

Published in Dawn, July 29th, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Property valuation
Updated 31 Oct, 2024

Property valuation

Market valuation rates will not help boost tax revenues without plugging such loopholes in the system.
Hitting a wall
31 Oct, 2024

Hitting a wall

PAKISTAN still has a long way to go in defeating polio. Despite our decades-long fight against the debilitating...
Kurram violence
31 Oct, 2024

Kurram violence

DESPITE years of intermittent and bloody conflict in Kurram, the state has been unable to bring lasting peace to ...
Court business
Updated 30 Oct, 2024

Court business

The unity and commonality of purpose on display in the full court meeting are what will help the SC endure.
UNRWA ban
30 Oct, 2024

UNRWA ban

NOT content with the war of extermination it is executing against the Palestinian people, Israel now wants to ensure...
Cricket changes
30 Oct, 2024

Cricket changes

WIN or lose, Pakistan cricket seems to be embroiled in a constant state of flux. Just when things seemed to be...