KARACHI: Trading on the stock market commenced on a negative note on the first day of the outgoing week as the index shed 1,284 points from its previous close.
According to Arif Habib Ltd, the major drop in share prices took place after Brent crude touched $139 per barrel, a 14-year high. Investors became nervous because the United States and the European Union actively considered banning Russian oil imports, raising concerns about Pakistan’s widening current account deficit.
Moreover, the submission of a no-confidence motion against Prime Minister Imran Khan by opposition parties in the National Assembly added to the woes of investors. Amid the political noise, the State Bank of Pakistan (SBP) kept the policy rate unchanged at 9.75 per cent, which brought the bulls back to the market.
Later in the week, international oil prices witnessed a hefty drop following a statement from the UAE’s ambassador to the United States urging the Organisation of the Petroleum Exporting Countries to increase production. This development cushioned the overall dip in the stock market and added back 810 points to the index on a day-on-day basis.
As a result, the benchmark settled at 43,653 points, down 898 points or 2.02pc on a week-on-week basis.
Foreign selling continued in the outgoing week. It amounted to $3.13 million versus a net sell of $0.97m a week ago.
According to AKD Securities, global commodities pared gains in the outgoing week, leading to a positive impact on the market. “This along with local political unrest and Russian-Ukraine peace talks will continue to steer the market’s trend,” it said, noting that the news flow relating to the ongoing review of the loan programme under the International Monetary Fund will also dictate market sentiments in coming weeks.
