Stocks climb up on China loan rollover

Bulls dominated trading at the Pakistan Stock Exchange (PSX) during the outgoing week with four sessions closing in the green. Investors’ buying interest revived as soon as China agreed to refinance a $2.24 billion loan. Investors took fresh positions as the week began with positive news that the government was engaged in talks on rolling over Chinese SAFE deposits of $2 billion. The week saw lower CPI inflation numbers for September 2022, which triggered optimism among market players. The bourse remained buoyant for two more days when the KSE-100 index rose above 42,000 points. Bulls also extended their run as investors cherished continued recovery of the rupee against the US dollar in the inter-bank market. The Asian Development Bank’s announcement that it would provide further flood relief support, which was expected to be received during the current month, boosted investor confidence. However, the situation changed and a bearish spell took over the bourse on Friday amid Moody’s report that dampened investor sentiment. The ratings agency downgraded Pakistan’s credit rating to Caa1 from B3 due to increased liquidity and external vulnerability risks. The week closed at 42,085, up 956 points from the previous week. “Bulls remained in charge as the KSE-100 index gained 2.3% week-on-week,” said JS Global analyst Muhammad Waqas Ghani.