Stocks falter below 48,000 level in choppy week

KARACHI: The stock market remained under pressure for all of the outgoing week particularly the negative developments in the last two trading days that exacerbated the fall. The KSE-100 index dropped by 635 points, or 1.32 per cent, and closed at 47,603.

Too many concerns came to occupy investors’ mind, beginning with the roll-over week and ending with the FATF plenary meeting announcement after five-day deliberations to keep Pakistan on the grey list.

Although the FATF announcement came after trading hours, the market was in a sombre mood with pessimism dripping from the statements of the foreign minister. In between, the investors remained nervous over the ongoing talks with the IMF and likely MSCI downgrade of Pakistan Index to Frontier Market from Emerging Market.

Going forward, the smooth passage of the Finance Bill 2021, the sharp drop in the Covid infection rate and the gathering speed in vaccination drive could encourage investors to enter the market.

Senior analysts said that the E&P scrips are expected to continue performing well due to higher international oil prices and government shelving divestment plan of OGDC and PPL and also deferring divestment of government shares in Mari Petroluem.

However, current acc­ount deficit of $632m for May and uptick in CPI in the upcoming months, may dampen investors sentiments.