Karachi, August 13, 2021 (PPI-OT): Lackluster performance at KSE100 Index this week

The KSE100 Index closed on a negative note this week, losing 320 points (-0.7% WoW) over COVID concerns and lack of triggers. This was also depicted by lower investor participation as volumes declined by 33% WoW to 307mn shares per day. From a sector-specific lens, Vanaspati & Allied Industries (-7.4% WoW), Glass & Ceramics (-3.0% WoW), Chemical (-2.6% WoW), Oil & Gas Marketing Companies (-3.0% WoW) among key underperformers this week. On the news front, the Finance Minister announced that IMF will disburse US$2.77bn by August 23rd to Pakistan. While the latest data reports total foreign exchange reserves at US$24.64bn, receipt of these funds would further boost the country’s reserves. The government also announced the invitation of bids for the cellular spectrum auction that amounts to US$832mn at base price. Moreover, car sales for the month of Jul-2021 were reported this week where sales of passenger cars doubled to more than 20,000 units this month, as compared to the same period last year. Automobile Assemblers outperformed the index by 1.1% WoW this week. Remittances for the month of Jul-2021 were also announced this week, which were reported at US$2.7bn (-2% YoY).