KARACHI: The stock market observed a roller coaster ride in the outgoing week.

Arif Habib Ltd said the highlight of the week was the policy rate announcement by the State Bank of Pakistan, which kept the key interest rate at 22 per cent in line with expectations. Moreover, there was a treasury bill auction, which saw no significant change in cut-off yields across all tenors. Further­more, global credit ratings agency Fitch chose to keep Pakistan’s Long-Term Foreign-Currency Issuer Default Rating unchanged at CCC despite favourable economic signs like the strengthening of the local currency and the continuation of a Stand-by Arrangement with the International Monetary Fund (IMF).

In addition, Saudi oil giant Aramco signed a definitive agreement to acquire a 40pc equity stake in Gas and Oil Pakistan Ltd. The large-scale manufacturing index witnessed a fall of 4.1pc year-on-year in October while the month-on-month decrease was 2pc. Foreign exchange reserves of the State Bank of Pakistan surged by $21 million to $7bn. The rupee closed at 283.26 against the greenback after appreciating by 0.22pc week-on-week.

As a result, the KSE-100 index closed at 66,130 points after declining by 94 points or 0.14pc from a week ago.

Sector-wise, negative contributions came from commercial banking (642 points), food and personal care (71 points), miscellaneous (54 points), textile composite (47 points) and leather and tanneries (35 points).

Sectors that contributed positively were oil and gas exploration (363 points) and fertiliser (301 points).

Scrip-wise, negative contributors were Meezan Bank Ltd (219 points), United Bank Ltd (173 points), Bank AL Habib Ltd (114 points), the Hub Power Company Ltd (91 points) and Habib Bank Ltd (84 points).

Meanwhile, positive contributions came from Pakistan Petroleum Ltd (251 points), Fauji Fertiliser Company Ltd (87 points), Pakistan Telecommunication Ltd (78 points), Sui Northern Gas Pipelines Ltd (78 points) and the Bank of Punjab (78 points).

Foreign buying clocked in at $13.1m versus a net purchase of $9.6m a week ago. Major buying was witnessed in “all other sectors” ($3.1m) and cement ($3m). On the local front, selling was reported by insurance companies ($5.65m) and brokers ($3.71m). The average daily volume arrived at 1,253m shares, up 22pc from a week ago. The average value traded settled at $107m, down 10pc from the preceding week.

According to AKD Securities Ltd, the stock market is poised to sustain a positive trajectory, although there can be some deceleration in the bull rally. “Upcoming elections hold pivotal significance, and their successful conclusion can further elevate investor confidence,” it said, adding that investors should retain long-term positions in companies with solid fundamentals.

Published in Dawn, December 17th, 2023