Trading on the stock exchange started on a positive note in the outgoing week in anticipation of the staff-level agreement between Pakistan and the International Monetary Fund (IMF).
Arif Habib Ltd said energy stocks, in particular, propelled the index of representative shares to recent highs as investors expected a resolution of the circular debt. Moreover, the rupee appreciated 2.7 per cent on a week-on-week basis against the dollar to close at 269.28.
However, talks with the IMF concluded on Thursday and the mission of the Washington-based lender left Pakistan without reaching an agreement. The news threw the stock market into a spiral in the last trading session.
The Sensitive Price Indicator (SPI) for the week recorded an increase of 2.82pc due to an increase in the prices of food items. Furthermore, reserves held by the State Bank of Pakistan (SBP) showcased a reduction of $170 million as they settled at $2.9 billion.
As a result, the KSE-100 index closed at 41,742 points, up 1,271 points or 3.14pc from a week ago.
Sector-wise, positive contributions came from oil and gas exploration (459 points), technology and communication (260 points), commercial banking (252 points), cement (78 points) and pharmaceutical (70 points).
Sectors that contributed negatively were power generation and distribution (71 points) and sugar and allied industries (three points).
Scrip-wise, positive contributors were Oil and Gas Development Company Ltd (259 points), Systems Ltd (152 points), Habib Bank Ltd (103 points), TRG Pakistan Ltd (99 points) and Pakistan Petroleum Ltd (97 points).
Meanwhile, negative contributions came from the Hub Power Company Ltd (75 points), Engro Corporation Ltd (51 points), Unilever Pakistan Foods Ltd (12 points), EFU General Insurance Ltd (11 points) and Javedan Corporation Ltd (six points).
Foreign buying continued and clocked in at $3.2m compared to a net purchase of $0.9m a week ago.
Major buying was witnessed in exploration and production ($4.8m) and commercial banking ($2.6m).
On the local front, selling was reported by insurance companies ($6.5m) and mutual funds ($5.2m).
The average daily volume was 284m shares, up 111pc from a week ago. The average daily value traded settled at $44.4m, up 94pc week-on-week. According to AKD Securities, investors should remain cautious given that inflation levels may hit north of 30pc in the coming months.
“All eyes are on the IMF staff-level agreement, with the positive news from the IMF subsequently unlocking foreign inflows. Improvement in the reserves will be a big relief as letters of credit restrictions would ease off,” it added.
