By Hamid Mahmood ISLAMABAD, December 01 (INP-WealthPK): The bulls won the battle with bears in the last trading hour of the week. Last week's trading activity was chaotic and bleak, with a negative shift of 2,375 points, or 5.38 percent, on a week-to-week basis. This is the largest weekly decrease since March 2020, when the KSE-100 index dropped from 46,489.41 to 44,114 points last week. This significant drop is due to a number of factors, including the State Bank of Pakistan (SBP) raising interest rates by 150 basis points to 8.75 percent, an alarming current account deficit of $5.1 billion in 4MFY21, the start of the roll-over week, net selling by foreigners as the country transitions from an emerging market to a frontier market, and a decline in foreign exchange reserves, all of which put pressure on the PKR parity. Furthermore, the announcement of a staff-level deal with the IMF did not help revive investor confidence. Despite the conclusion of the petroleum, dealers strike following an agreement with the government to enhance margins, news of a $3 billion influx from Saudi Arabia due next week, and a collapse in worldwide oil prices, the index recovered. Major PSX indices summary is given in the table below.

Index	Week End	Week Start	Change	% Δ
KSE 100 Index	44,114.16	46,489.41	-2,375.25	-5.3843
All Shares Index	30,302.34	31,728.08	-1425.74	-4.705
KSE 30 Index	17,034.02	18,037.74	-1003.72	-5.8924
KMI 30 Index	71,028.61	75,476.97	-4448.36	-6.2628

Source: PSX Stocks fell by 150 basis points last Monday, greater than market expectations, as investors expected a significant increase in the cost of financing. The KSE100 Index fell 744.41 points, or 1.60 percent, to finish at 45,745.00 points, with intra-trade highs and lows of 46,602.59 and 45,716.87 points, respectively. Stocks fell for the second day in a row on Tuesday, as the meltdown sparked by a major monetary tightening continued to fuel a panic-selling binge. The KSE100 Index fell by 796.48 points to settle at 44948.52 points. On Wednesday, the capital market panic entered its third day as news of a possible minibudget sent tremors down the market, with investors prepared for even more severe blows as the government implements the IMF's stringent criteria. The KSE100 Index fell 584.82 points, or 1.30 percent, to settle at 44363.70 points. Stocks fell for the fourth session in a row on Thursday as significant foreign withdrawals drained the market, while a grim currency outlook depressed the mood even more, traders said. The KSE100 Index fell over 428 points, or 1 percent, to settle at 43,935.75 points. On Friday, the Pakistan Stock Exchange (PSX) ended a four-day losing skid. Investors believed that the last leg of the foreign selling binge had been concluded on the previous trading day, therefore the market began with a bullish momentum. Investor expectations were dashed as foreign selling persisted, sending the market back into negative territory. As the market saw heavy volumes in the third-tier equities, activity remained sideways. Institutional purchasers, on the other hand, began to look for value stocks due to favorable multiples, causing the market to close in the green. The index finished at 44,114 points, up from 43,936 points, or a gain of 178.4 points, or 0.4 percent. Weekly Graphical Presentation Source: PSX Due to the unstable economic scenario during the week, the SBP policy rate and the start of the roll-over week, international investors profited and made $39.15 million. Resultantly, foreign currency reserves have been declining exerting pressure on the PKR. Foreign corporations sold $42.63 million, the greatest amount sold this week, followed by insurance companies with $2.80 million and brokers with $1.60 million. Individuals bought $16.04 million worth of stock, the largest buy of the week. Local companies purchased $13.31 million, while banks purchased $8.24 million. Investors expect the market to be positive in the coming week as a result of Saudi Arabia's support in the form of $3 billion in safe deposits, which will relieve pressure on foreign exchange reserves, a slowdown in international oil prices, which will relieve inflationary pressure, and the end of roll-over week. However, current macroeconomic worries such as increased imports, greater inflationary readings due to rising commodity prices, and currency pressure may keep the market range-bound. The EPCL, PSO, OGDC, HUBC, HBL, MCB, FFC, LUCK, ENGRO, INDU, UBL, PTL, SNGP, UNITY, HTL, AGHA, and ILP are among the favourite stocks for next week.