KARACHI: The stock market witnessed a negative performance during the shortened week due to increasing political tensions and poor economic data.
However, robust corporate results encouraged investors to go for cherry-picking, which supported the index to recover some losses in the third last session. However, the market faltered in the closing session.
According to Arif Habib Ltd (AHL), the market remained range-bound in the short week due to the Independence Day holiday on Aug 14. The MSCI increased Pakistan’s weight in the frontier market index to 3.9 per cent under its review for August. Additionally, the government raised Rs119 billion against a target of Rs100bn through Ijarah sukuk. The SBP reserves increased by $119m in the week ending on Aug 9, reaching $9.3bn.
However, the Large-Scale Manufacturing output contracted 0.92pc in FY24. The trade deficit widened by 21pc to $2.0bn in July. Furthermore, the rupee lost week-on-week 15 paise or 0.05pc to Rs278.7 against the dollar. As a result, the benchmark KSE 100 index settled at 78,045 points after losing 525 points or 0.7pc week-on-week. Other significant economic data included auto sales plunged 36pc month-on-month in July, petroleum imports soared 60pc to $1.3bn, and textile exports shrank 3.1pc to $1.27bn in the first month of FY25.
Foreigner buying clocked in at $5.26m compared to a net buy of $1.41m in the preceding week.
The average trading volume rose 12.2pc to 553m shares while the average traded value increased 1.1pc to $75m week-on-week.
According to AHL, the market will likely remain positive, buoyed by the earning season. Additionally, investors will pay close attention to any updates on the IMF’s executive board meeting regarding approval of the new 37-month $7bn loan for Pakistan.
Published in Dawn, August 18th, 2024
Dear visitor, the comments section is undergoing an overhaul and will return soon.