Stocks fall below 71,000 in gloomy week

The status quo in the SBP policy rate against the market expectation of a cut disappointed investors who resorted to profit-selling, dragging the index below the 71,000 level in the outgoing volatile week. Arif Habib Ltd (AHL) said the index experienced persistent pressure throughout the week as the market anticipated a rate cut, which ultimately remained unchanged at 22 per cent. On the economic front, Pakistan received the last tranche of $1.1 billion under the IMF’s Stand-By Arrangement programme. Moreover, headline inflation in April clocked in at 17.34pc year-on-year (lowest since May 2022) compared to 20.7pc in March. The trade deficit shrank by 17pc year-on-year for 10MFY24, settling at $19.5bn. Furthermore, during 3QFY24, the economy recorded its first negative primary balance of FY24, amounting to a deficit of Rs197bn. Also, the government reduced petrol and diesel prices by Rs5.45 and Rs8.42 per litre. In addition, SBP foreign exchange reserves increased by $25m to $8.0bn in the week ending April 26. During the week, the rupee strengthened by 18 paise to Rs278.21 against the US dollar.