By Irfan Ahmed ISLAMABAD, June 08, (INP-WealthPK): The market trading witnessed panic at the local bourse last week as Moody’s Investors Service downgraded the outlook of Pakistan from stable to negative, WealthPK reports. The announcement by the government to increase the price of petrol by Rs30 per litre also fuelled inflationary concerns in the country. The partial removal of subsidies on petrol and diesel is meant to ensure the resumption of the International Monetary Fund’s programme. As a result of these measures, the Pakistani rupee staged a recovery against the greenback and closed at 197.92. However, concerns over inflation, which reached a 28-month high of 13.8% on May 22, and an uptick in government securities yields in the T-Bill auction, dampened the sentiment at the index. Moreover, the jump of 1.5% in the National Savings rate and the expected hike in power prices sent alarm bells ringing in the country. The market ended the day with a loss of 1,546.57 points, closing at 41,314.88 points (down by 3.6%). The All-Share index is down 787.27 points, the KSE 30 index is down 542.37 points, and the KMI30 index is down 2,202.24 points on a weekly basis.

Index	Week Start	Week End	Change	% Δ
KSE 100 Index	42,861.45	41,314.88	-1,546.57	-3.608300699
All Shares Index	29,257.53	28,470.26	-787.27	-2.690828652
KSE 30 Index	16,276.12	15,733.75	-542.37	-3.332305242
KMI 30 Index	69,055.39	66,851.15	-2,204.24	-3.191988344

Source: PSX/ WealthPK Research Stocks showed an upward trend on May 30 after concerns over the IMF loan programme amid dwindling foreign exchange reserves and growing political noise weighed on investors’ confidence. On Monday, the benchmark KSE 100-index continued with a bullish trend, gaining 178.69 points, with a positive change of 0.42%, closing at 43,040.14 points against 42,861.45 points on the last working day. Stocks continued upward on May 31 as the investors mainly opted to stay on the sidelines as they remained sceptical of the deteriorating macroeconomic outlook besides rising inflation figures in the country. At close, touching a high at 43,339 and a low at 43,018 points, the benchmark KSE-100 index recorded an incline of 38 points to settle at 43,078.14 points. The market remained under pressure on June 1 as investors remained stagnant over expectations of an adverse budget announcement and also because of selling pressure emanating from across-the-board concerns over rising inflation. The benchmark KSE-100 index ended at 42,756.04 points compared to the previous day’s closing of 43,078.14 points, showing a decline of 322.10 points. Selling pressure gripped the Pakistan Stock Exchange on June 2, following an increase in treasury bill yields by 75 basis points to 15.25% and predictions of a further hike in the policy rate. The benchmark KSE-100 index recorded a decline of 518.13 points to settle at 42,237.91 points, down from 42,756.04 points. On June 3, the last trading day of the week, the stock market witnessed another bearish session due to monetary tightening and inflationary concerns. The benchmark KSE-100 index went down by 2.2% and closed at 41,314.88 points, down from 42,237.91 points in the previous session. [caption id="attachment_68090" align="aligncenter" width="696"] Source: PSX/ WealthPK Research[/caption] By selling its shares last week, the Foreign Investors Portfolio Investment (FIPI) made a profit of up to $1.77 million. The banks made the most money this week, selling their shares for $1.47 million, followed by Broker Proprietary Treading with $0.34 million and foreign individuals with $0.05 million. Companies purchased up to $0.79 million in shares, followed by foreign corporates, which purchased $0.08 million in stock. Individuals purchased up to $3.16 million worth of stock. According to Mohammad Irfan, a financial analyst working with Arif Habib Limited, the market is expected to remain range-bound as the federal budget 2022-23 is expected to be announced on June 10. The outcome of the budget will determine the market direction in the future. “Moreover, the government may opt to roll back the remaining subsidy on petrol and diesel next week, which may further ignite inflationary concerns,” he told WealthPK.