Karachi, September 22, 2023 (PPI-OT): KSE100 closes on a positive note, up 1.5% WoW

KSE-100 began the week on a positive note as investors welcomed central bank's decision to maintain its policy rate at 22%, alleviating concerns about a potential interest rate hike amid increasing inflation. KSE-100 index closed the week at 46,421, gaining 668 points WoW. During the week, Rupee continued to gain and closed the week at Rs295 in the open market, gaining 1.6% WoW. SBP has implemented measures to oversee the forex market and to enforce regulations against unauthorized currency operators. On the economic news front, as per PBS, Large Scale Manufacturing posted a 1.1% decline YoY in Jul-2023.

While the data remained in the red zone for the 11th consecutive month, the declining pace contracted over lower base. On a MoM basis, July continued to witness a 3.6% decrease in output. In the T-bills auction held this week, SBP sold 3-month, 6-month and 12-month treasury bills at lower yields compared to previous auction, reflecting market's expectation of inflation easing down in the coming months. The 3-month paper attracted the most interest where yields showed a decline of 1.71% compared to previous cut-off. Furthermore, SBP FX reserves increased by US$56mn to US$7.7bn.