Stocks suffer losses in mixed week

KARACHI: The natio­nal bourse experienced a mixed trend during the outgoing week amid a host of positive and negative triggers.

Arif Habib Ltd said the resolution of the gas sector’s circular debt through a dividend plough-back scheme along with the approval of a refinery policy kept the positive sentiments alive.

Moreover, there was also an upward revision in Pakistan’s weight in the MSCI Frontier Markets Index from 0.6 per cent to 2.7pc. In addition, foreign exchange reserves of the State Bank of Pakistan decreased by $110 million to hit $8 billion. The rupee also depreciated during the outgoing week against the dollar to close at 288.49 after losing 0.5pc from a week ago. As a result, the benchmark of the stock exchange closed at 48,424 points after declining by 161 points or 0.3pc from a week ago.

Sector-wise, negative contributions came from technology (157 points), exploration and production (116 points), oil marketing companies (87 points), refinery (73 points) and chemical (56 points).

Meanwhile, sectors that contributed positively were fertiliser (264 points) and banking (153 points).

Scrip-wise, negative contributors were Systems Ltd (92 points), Oil and Gas Development Company Ltd (77 points), Pakistan Petroleum Ltd (66 points), Pakistan State Oil Company Ltd (53 points) and TRG Pakistan Ltd (51 points).

Meanwhile, scrip-wise positive contributions came from Dawood Hercules Corporation Ltd (181 points), United Bank Ltd (96 points), Engro Corporation Ltd (93 points), MCB Bank Ltd (58 points) and Lucky Cement Ltd (38 points).

According to AKD Securities, the market is expected to remain positive as the new caretaker government and the relations it develops with the IMF are likely to bring stability.

“After a significant upside, the market still remains cheap at the forward price-to-earnings multiple of 3.1. Additionally, the influx of investments by the United Arab Emirates and Saudi Arabia will bolster and affirm stability.”