Stocks post losses in jittery week

The stock market remained range-bound in the outgoing week owing to many political and economic developments. Arif Habib Ltd said the transfer of power from an elected government to an interim caretaker setup played a role in keeping the index movement within a short range. Additionally, the market sentiment was adversely affected by an increase in petrol and diesel prices of Rs17.50 and Rs20 a litre, respectively. On the economic front, the fiscal-year deficit was recorded at Rs6.5 trillion or 7.7 per cent of GDP. In addition, as of June 2023, the central government debt increased to Rs60.8tr, up 3.3pc from a month ago. Foreign exchange reserves of the State Bank of Pakistan increased by $12 million to hit $8.1bn. The rupee depreciated during the outgoing week against the dollar to close at 295.78, down 2.46pc week-on-week. As a result, the stock market’s benchmark index closed at 48,218 points after declining by 206 points or 0.4pc from a week ago. Sector-wise, negative contributions came from commercial banking (159 points), fertiliser (122 points), cement (63 points), chemicals (38 points) and exploration and production (37 points). Meanwhile, sectors that contributed positively were technology (194 points) and textile composite (20 points).