Stocks post weekly gains as investors pin hopes on IMF talks

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).