Irfan Ahmed

The Pakistan Stock Exchange turned bullish last week as Saudi Arabia showed the intention to renew $3 billion deposits, WealthPK reports.

Saudi Arabia wanted to renew $3 billion deposits along with the provision of additional support worth $100 million per month in terms of petroleum procurement, which took the market above the 43,000 level.

Furthermore, the large-scale manufacturing industries’ data show a jump of 11.7 percent on a year-on-year basis in 2022. Albeit, profit taking kicked in mid-week while the announcement of a potential Rs50 billion taxes to be imposed by the government also weakened market sentiment.

Moreover, the Pakistani rupee once again witnessed some depreciation against the dollar, the market closed in the green zone at 43,270.65 points, up by 413.08 points on a week-on-week basis.

According to WealthPK analysis, the market gained 413.08 points throughout the week, closing at 43,270.65 points, up by 0.96 percent. The All-Share Index also increased by 175.32 points, the KSE-30 index gained 183.02 points and the KMI-30 index increased by 1,057.89 points on a weekly basis.

A letter of intent from the International Monetary Fund (IMF) and other expected inflows helped the Pakistan Stock Exchange (PSX) to gain 764 points on August 15. The benchmark KSE-100 index closed at 43,621.82 points with an increase of 1.78 percent against 42,857.57 points on the last working day.

The stock market witnessed a bearish trend on August 16 after the announcement that the government increased the prices of petroleum. As a result, the KSE-100 index fell 185.34 points to close at 43,436.48 points.

In the wake of some clarity about the economic situation in the country, the stock market witnessed a bullish trend. On August 17, the KSE-100 index rose 240.08 points to close at 43,676.56 points.

As a result of the depreciation of the rupee, the Pakistan Stock Exchange (PSX) on August 18 had a bearish trend. The KSE-100 index closed the day with a loss of 195.06 points.

The stock market turned red because recent inflation figures of 42.3 percent dampened investors’ optimism, as they feared the benchmark interest rate would be raised at next month’s monetary policy announcement. The KSE-100 index settled at 43,270.65 points with a loss of 210.85 points. On a weekly basis, the KSE-100 Index gained 0.96 percent.

By selling its shares last week, the Foreign Investors Portfolio Investment (FIPI) made a profit of up to $2.78 million. foreign corporates made the most money this week, selling their shares for $5.42 million, followed by insurance companies with $ 4.46 million and banks with $2.50 million. Broker proprietary trading purchased up to $7.23 million in shares, followed by overseas Pakistani, which purchased $ 2.54 million in stock. Companies purchased up to $2.48 million worth of stock.

According to Suhail Farooq, a financial analyst, key events to look out for include the monetary policy meeting, which is scheduled for the next week. The meeting is likely to dictate the direction of the market, where no change in the interest rates by the State Bank of Pakistan is expected.

Keeping in view the ongoing result season, some sectors and scrips are expected to stay in the limelight. Stability in the Pakistan rupee against the greenback will keep the sentiment upbeat. “We expect the market to be positive in the upcoming week,” Suhail Farooq told WealthPK

Independent News Pakistan-Wealthpk