Saba Javed

Pakistan Stock Exchange (PSX) commenced the last week (April 3) on a negative note as the market participants expected an interest rate hike by the State Bank. Moreover, the ongoing political turmoil continued to dampen the investor sentiment.  During the week under review, the Pakistani rupee also depreciated against the US dollar by Rs0.63, or 0.22%, closing the week (April 7) at Rs284.42.

The stock market closed the week at 40,050 points, up by 49 points, or just 0.12%, from the week earlier. Robust buying by foreign investors was witnessed during the week, clocking in at $4.7 million compared to a net sale of $0.15 million last week.  Major buying was witnessed in the exploration and production sector ($3.0 million) and banks ($0.8 million).  On the local front, selling was reported by insurance companies ($4.8 million) followed by other sectors ($2.8 million). Average trading volume stood at 110 million shares (up by 19% weekly), while average value settled at $10 million (down by 14% weekly).

According to WealthPK analysis, the market gained 49 points throughout the week, closing at 40,050 points (up by 0.12%) week-on-week. The All-Share Index increased by 37 points or 0.14%, the KSE-30 Index surged by 148 points or 1%, and the KMI-30 Index increased by 674 points or 0.97% on a weekly basis.    

According to Muhammad Irfan, a financial analyst, market sentiment can improve if Saudi Arabia, which has committed to providing financial assistance of $2 billion to Pakistan, realises its commitment. He said market participants are also waiting for commitments from other friendly countries to materialise.

“If the commitments from friendly countries do materialise, then it will lead to finalisation of the staff level agreement of the International Monetary Fund loan programme, boosting the country’s foreign exchange reserves and positively impacting the market outlook,” he underscored.

Credit: Independent News Pakistan-WealthPk