Stocks choppy as outlook remains gloomy

Trading in the stock market started in the outgoing week on a positive note as parliament passed the mini-budget aimed at generating additional Rs170 billion. Arif Habib Ltd said another positive trigger was the decline of $7.76bn in the current account deficit in the first seven months of 2022-23 to $3.8bn, thanks to a massive reduction in imports. However, conditions in the stock market started deteriorating towards the end of the week. Money market yields rose significantly, which indicated an imminent rate hike. Furthermore, reserves of the State Bank of Pakistan (SBP) showed an increase of $66 million to $3.25bn. The rupee appreciated 1.07 per cent week-on-week against the dollar, which closed at Rs259.99. As a result, the benchmark of representative stocks closed at 40,708 points, down 411 points or 1pc from a week ago. According to AKD Securities, the stock market is expected to remain range-bound in the near future owing to the concerns about a hike in the interest rate.