Stocks post weekly losses on IMF concerns

KARACHI: Trading on the stock market in the outgoing week commenced on a negative note amid concerns over the resumption of the International Monetary Fund (IMF) loan programme, according to Arif Habib Ltd.

Moreover, the exchange rate in the local currency gained Rs3.06 against the dollar to close the week at Rs207.91. Other market-moving news stories included the cement off-take declining by 7.9 per cent year-on-year in 2021-22. Sales of petrol and diesel in June witnessed a drop of 12pc and 16pc on a month-on-month basis, respectively. Meanwhile, a reduction in the Arab Light price by 4pc provided some respite to investors and cushioned the overall dip in the stock market.

As a result, the benchmark index closed at 41,344 points, down 286 points or 0.7pc from a week ago.

Sector-wise, negative contributions came from cement (97 points), fertiliser (57 points), commercial banking (30 points), chemical (27 points) and power generation and distribution (24 points).

Sectors that contributed positively to the index were technology and communication (27 points), oil and gas marketing (18 points), oil and gas exploration (13 points), close-end mutual funds (four points) and real estate investment trust (three points).

“We expect the market to remain range-bound next week… the market activity is expected to remain subdued,” said the brokerage.