Stocks end week in red on rising political unrest

Trading on the stock exchange commenced on a positive note in the outgoing week as investors celebrated the reported progress towards the resolution of the circular debt, said Arif Habib Ltd. The benchmark index of the stock market remained in then green zone subsequently as Pakistan secured more than $10 billion in pledges from international financial institutions. The United Arab Emirates also agreed to lend $1bn to Pakistan and roll over an existing $2bn loan. However, uncertainty prevailed towards the end of the week owing to political concerns. Moreover, foreign exchange reserves fell by $1.2bn to $4.3bn, lowest level since February 2014. The large drop in the reserves was due to the external debt repayment. In addition, the rupee depreciated by 1.01 or 0.4 per cent week-on-week against the dollar to close at 228.14. As a result, the index closed at 40,323 points, shedding 684 points or 1.7pc from a week ago. Sector-wise, negative contributions came from commercial banking (222 points), fertiliser (132 points), technology and communication (132 points), pharmaceutical (59 points) and oil and gas exploration (35 points). Sectors that contributed positively were miscellaneous (68 points), automobile assembling (39 points), insurance (six points), automobile parts and accessories (three points) and paper and board (three points).