Stocks post 2.3pc weekly growth

The stock market continued its upward trend in the outgoing week as China agreed to refinance a $2.24 billion loan while the government engaged in talks with China over the rolling over of its $2bn deposits. Arif Habib Ltd said the shrinking of the trade deficit by 21.4 per cent on an annual basis to $9.2bn helped the index sustain momentum during the outgoing week. Furthermore, the rupee appreciated against the greenback and closed at 219.92, up 8.53 or 3.7pc week-on-week. Moreover, Asian Development Bank announced it’d provide aid to the tune of $2.3bn-$2.5bn in flood relief. However, Moody’s cut Pakistan’s sovereign credit rating from B3 to Caa1 last Thursday owing to increased liquidity and external vulnerability risks. The decision kept the bourse in check in the last two days of trading. As a result, the benchmark index closed at 42,085 points after gaining 956 points or 2.3pc from a week ago. Sector-wise, positive contributions came from technology and communication (360 points), power generation and distribution (251 points), cement (129 points), fertiliser (115 points) and chemical (44 points).