KARACHI:Volatility marred trading in the stock market in the outgoing week despite the revival of the much-awaited multi-billion loan programme with the International Monetary Fund (IMF) and rupee appreciation.
The benchmark KSE 100-share index shed 282 points or 0.7% during the week to settle at 42,309.11 points.
The week commenced on a negative note as investors reacted to the devastations caused by the catastrophic floods in the country and their overall impact on the economy. Moreover, a cautious stance was adopted as the executive board was supposed to meet later in the day to take final decisions regarding Pakistan’s Extended Fund Facility (EFF).
The following session also saw the index finish slightly in the red with participants remaining on the sidelines. In line with expectations, the Washington-based lender successfully resumed Pakistan’s stalled programme, which helped create positive momentum in the stock market. However, the floods have overshadowed the massive development as flash floods have disrupted the supply chain and caused substantial economic losses.
Wednesday saw a turn of events and the index advanced as the government’s decision to allocate over Rs103 billion for the provision of urgent relief to 4.1 million flood-affected people revived investors. Investors resumed buying stocks at attractive valuations.
Bulls held control on Thursday as well as Pakistan received funds from the IMF which also strengthened the rupee value. Receipts worth $1.16 billion from the IMF sparked optimism among market participants, who resorted to making fresh purchases. However, bears returned to the bourse on the last day of the trading week owing to the absence of positive triggers and fears of massive flood losses.
However, decade-high inflation based on consumer and sensitive price indices put pressure on the market players.-Agencies
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