Stocks drift higher in jittery week

KARACHI: Trading on the stock market commenced in the outgoing week on a negative note amid the hustle and bustle in the political arena, said Arif Habib Ltd.

In addition, the rupee remained under pressure and closed at 220.84 against the greenback, down one per cent from a week ago. Furthermore, reserves of the State Bank of Pakistan (SBP) remained unchanged at $7.6 billion in the outgoing week. Foreign direct investment declined 47pc year-on-year for July-September.

The momentum on the exchange shifted towards the green zone since the current account deficit narrowed 72.5pc year-on-year to $316 million in September, lowest since April 2021.

A statement from the United States showing confidence in the safety of Pakistan’s nuclear assets strengthened the investors’ sentiments. Moreover, a loan worth $1.5bn from Asian Development Bank was finalised during the outgoing week.

As a result, the benchmark closed at 42,213 points, gaining 265 points or 0.63pc from a week ago.

Sector-wise, positive contributions came from fertiliser (112 points), power (82 points), exploration and production (49 points), banking (37 points) and tobacco (31 points).

Sectors that contributed negatively were technology (40 points) and chemical (28 points).

Scrip-wise, positive contributors were the Hub Power Company Ltd (80 points), Engro Corporation (77 points), Mari Petroleum Company (51 points), Pakistan Oilfields Ltd (44 points) and Millat Tractors Ltd (40 points).

Meanwhile, negative contributions came from Pakistan Petroleum Ltd (31 points), Pakistan State Oil Company Ltd (26 points), Systems Ltd (19 points), TRG Pakistan Ltd (18 points) and Engro Polymer and Chemicals Ltd (16 points).

According to AKD Securities, some players may view the dampening down of the political turmoil as a bull trigger for the market.

Moreover, it said the country’s removal from the Financial Action Task Force’s grey list may increase the flows of foreign funding into the equity market. “Keeping in view the uncertainty, the near-term outlook for the equity market remains hazy as both bear- and bull-run triggers loom overhead,” it said.