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Today's Paper | November 23, 2024

Published 30 Oct, 2022 07:25am

Stocks extend weekly losses on ‘long march’ concerns

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

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