KARACHI: Trading in the stock market commenced on a positive note in the outgoing week as investors welcomed the establishment of the Special Investment Facilitation Council, which is aimed at attracting foreign direct investment from Gulf countries.

       Arif Habib Ltd said the bulls charged after the State Bank of Pakistan (SBP) kept the policy rate unchanged at 22 per cent. On Wednesday, the stock market reached a six-year high, crossing the 49,000-point level in intraday trading.

       Meanwhile, inflation soared to 28.3pc in July versus 24.9pc a year ago. Cement sales jumped 57pc year-on-year in July while urea and DAP volumetric sales swelled up by 36pc and 69pc, respectively. The offtake of petrol and diesel increased year-on-year by 10pc and 11pc, respectively, in July. The rupee closed at 286.97 against the greenback after depreciating 0.18pc on a week-on-week basis.

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       As a result, the benchmark index of the stock market closed at 48,586 points after gaining 1,509 points or 3.2pc from a week ago. This market recorded a positive return for the sixth consecutive week.

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       According to AKD Securities, the stock market is likely to stay positive given the strengthening of macros and the receipt of Chinese loan rollovers worth $2.4bn.

       “Market participants are advised to implement a cautious approach when investing while focusing on dollar-denominated revenue stream companies like exploration and production and technology to hedge against currency risk or in companies with healthy dividend yields,” it said.

       Published in Dawn, August 6th, 2023