Pro IQRA News Updates.
KARACHI: The stock market had a relatively stable performance during the week of August 14. The transition to a temporary caretaker setup contributed to the market’s limited movement. The announcement of significant hikes in petrol and diesel prices further dampened market sentiment.
The fiscal year’s deficit reached Rs 6.5 trillion, equivalent to 7.7 percent of GDP. National debt rose by 3.3 percent to Rs 60.8 trillion in June 2023. State Bank of Pakistan’s foreign exchange reserves increased by $12 million to reach $8.1 billion.
Meanwhile, the rupee depreciated against the dollar during the week to close at 295.78, down 2.46 percent from the previous week. As a result, the stock market benchmark ended at 48,218 points, down 206 points or 0.4 percent from the previous week.
Several sectors experienced negative contributions, including commercial banks, fertilizers, cement, chemicals, and exploration and production. However, the technology and textile composites sectors contributed positively.
Individual company stocks also had mixed performances. Engro Corporation Ltd, Oil and Gas Development Company Ltd, MCB Bank Ltd, Meezan Bank Ltd and Habib Bank Ltd saw declines, while Systems Ltd, Pakistan Petroleum Ltd, Nestle Pakistan Ltd, Thal Ltd and Interloop Ltd saw positive contributions.
Despite potential volatility due to IMF conditions and upcoming general elections, the stock market is expected to maintain a positive trajectory in the coming week, aided by a smooth transfer of power to the caretaker set-up. However, market developments may remain unstable, partly dampened by bilateral/multilateral inflow commitments and healthy reserves.
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