Stocks lower on back of rupee fall

The Pakistan Stock Exchange witnessed a lacklustre trading week as jittery investors weighed the impact of rising political and economic uncertainty in the country coupled with persistent rupee depreciation. On Monday, stock trading kicked off with a slide as weakening of the local currency sparked a sell-off. Investors’ participation remained muted in anticipation of mounting inflation. Positive developments on the political front in the subsequent session helped the market stage a rebound as the former prime minister showed his willingness to speak to the government if it agreed to hold free and fair elections. Market participants managed to keep the benchmark KSE-100 index in the green for two consecutive sessions despite highly volatile trading. The index reversed trend as selling pressure dragged the market down in a two-day bear run with continuous rupee devaluation hammering investors’ interest. The index closed the week in the red and settled at 41,679.49, down 269 points week-on-week. “Pakistan equities closed the week on a negative note at 41,679, down 269 points,” said JS Global analyst Muhammad Waqas Ghani in a report.