KARACHI: Trading on the stock market commen­ced on a positive note in the outgoing week as Pakistan exited the Financial Action Task Force’s grey list after four years.

Arif Habib Ltd said the movement of the index shifted towards the red zone after former prime minister Imran Khan announced his plan to hold a long march from Lahore to Islamabad.

The rupee remained under pressure against the greenback and closed at 222.47, down one per cent week-on-week.

In addition, reserves of the State Bank of Pakistan (SBP) went down to $7.4 billion, down by $157 million on a weekly basis owing to external debt repayments.

In another alarming development, Pakistan’s five-year credit default swap crossed the 50pc mark during the outgoing week, reflecting international investors’ dwindling level of trust in Pakistan’s ability to repay its dollar-denominated loans.

As a result, the index closed at 41,140 points after losing 1,073 points or 2.5pc value from a week ago.

Sector-wise, positive contributions came from fertiliser (31 points), automobile parts (4.6 points) and vanaspati and allied industries (0.22 points).

Sectors that contributed negatively were cement (208 points), technology (162 points), exploration and production (126 points), automobile assembling (106 points) and power (85 points).

Scrip-wise, positive contributors were Engro Fertilisers Ltd (39 points), Faysal Bank Ltd (28 points), Systems Ltd (53 points), Pakistan Oilfields Ltd (22 points) and MCB Bank Ltd (21 points).

Negative contributions came from TRG Pakistan Ltd (159 points), Pakistan Petroleum Ltd (99 points), Lucky Cement Ltd (96 points), Millat Tractors Ltd (70 points) and Pakistan State Oil Company Ltd (67 points).

Foreign buying was witnessed in the outgoing week as it clocked in at $0.97m versus a net sale of $3.4m in the preceding week.

Major buying was witnessed in technology ($1m), exploration and production ($0.8m) and oil marketing companies ($0.6m). On the local front, selling was reported by mutual funds ($3.3m) and individuals ($2.4m).

The average daily volumes clocked in at 214m shares, down 6pc week-on-week.

The average value traded settled at $28m, down 1pc on a weekly basis.

According to AKD Securities, 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 are expected to keep market movements in check,” it added while advising its clients to stay cautious in building new positions.

Published in Dawn, October 30th, 2022

Opinion

Editorial

Smog hazard
Updated 05 Nov, 2024

Smog hazard

The catastrophe unfolding in Lahore is a product of authorities’ repeated failure to recognise environmental impact of rapid urbanisation.
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....
Disregarding CCI
Updated 04 Nov, 2024

Disregarding CCI

The failure to regularly convene CCI meetings means that the process of democratic decision-making is falling apart.
Defeating TB
04 Nov, 2024

Defeating TB

CONSIDERING the fact that Pakistan has the fifth highest burden of tuberculosis in the world as per the World Health...
Ceasefire charade
Updated 04 Nov, 2024

Ceasefire charade

The US talks of peace, while simultaneously arming and funding their Israeli allies, are doomed to fail, and are little more than a charade.