KARACHI: Trading on the stock market commenced in the outgoing week on a positive note as the energy exploration and production shares remained in the limelight amid a jump in international oil prices.

According to Arif Habib Ltd, the initial positive momentum couldn’t last long over economic concerns such as the rupee’s depreciation, which closed the week at 186.70, and the resumption of the loan programme by the IMF.

Meanwhile, a widening trade deficit in March further exerted pressure on listed shares. A downward revision in the growth target to four per cent by the World Bank and a rise in the yields of treasury bills by up to 70 basis points further suppressed the investors’ sentiment.

As a result, the benchmark of the bourse closed at 45,553 points, shedding 1,049 points or 2.3pc week-on-week.

Sector-wise, negative contributions came from commercial banking (396 points), cement (221 points), technology and communication (99 points), power generation and distribution (74 points) and miscellaneous (72 points).

Sectors that contributed positively were oil and gas exploration (88 points), chemical (31 points), fertiliser (10 points), glass and ceramics (three points) and textile spinning (one point).

Scrip-wise, negative contributors were Habib Bank Ltd (90 points), Bank Al Habib Ltd (85 points), Lucky Cement Ltd (70 points), Systems Ltd (66 points) and Pakistan Services Ltd (66 points).

Meanwhile, scrip-wise positive contributions came from Oil and Gas Development Company Ltd (56 points), Fauji Fertiliser Company Ltd (45 points), Pakistan Petroleum Ltd (43 points), Lotte Chemical Pakistan Ltd (28 points) and Engro Fertilisers Ltd (27 points).

Foreign selling took place in the outgoing week, with the net outflow clocking in at $0.97 million versus a net buy of $1.29 million in the preceding week. Major selling was witnessed in commercial banking ($1.74m) and food and personal care ($0.14m).

On the local front, buying was reported by individuals ($7.03m) and companies ($0.87m). The average daily volume clocked in at 225m shares, down 53pc week-on-week. The average daily value traded settled at $41m, down 39pc on a weekly basis.

AKD Securities expects the stock market to remain jittery in the near term following the downward trend obser­ved in the outgoing week.

“News from the IMF is bound to dictate market sentiments in the near term... with tough conditions being laid out for the country in the ongoing review. The results season is vital in formulating investment strategies as the best-performing scrips are likely to experience gains,” the brokerage added.

Published in Dawn, April 24th, 2022