Karachi, July 27, 2023 (PPI-OT): Positive momentum continues, KSE-100 up 2.5% WoW
Following last week's momentum, investor optimism remained strong throughout this week. KSE-100 index closed the week at 47,077, up 1,156 points Wows. Index crossed the 47,000 marks for the first time since Nov-2021. Sectorwise, OMCs (6.7% WoW), Power (5.7% WoW) and Refinery Sector (5.4% WoW) outperformed during the week. On the economic news front, China granted a 2-yr rollover of US$2.4bn loan, supporting SBP's foreign exchange reserves. In other news, government's plan to establish a Rs2.3trn Sovereign Wealth Fund has emerged, with the identification of seven state assets to be transferred to the fund.
The fund's operations will be overseen by a Supervisory Council led by Prime Minister. During the week, NEPRA officially sanctioned a Rs7.5/unit increase in electricity tariff nationwide, set to take effect from July 1, 2023. On the other hand, Finance Minister chaired a meeting on Thursday regarding energy sector reforms, focusing on gas sector's circular debt. Finance minister directed the committee to finalise their report and action plan for early settlement of circular debt. This, coupled with the news of signing of MoUs for a Saudi led Greenfield refinery project, led to buying interest in E and P, OMC and Power sectors on the last trading day.