Karachi, August 11, 2023 (PPI-OT): Bears maintain their grip, KSE-100 down 0.3% WoW

Week started on a dull note but investor optimism picked up as it progressed. KSE-100 index eventually closed the week at 48,424, down 161 points WoW. In the realm of news, potential postponement of elections added to investor apprehension. During the week, Parliament underwent dissolution, as PM took steps to transition authority to interim government for upcoming elections.

However, discussions for caretaker premier failed to yield a unanimous agreement on any candidate. On the other hand, in a noteworthy development poised to alleviate economic concerns, the IMF is reportedly open to consider collaboration with an extended caretaker administration to conclude the ongoing SBA. In other news, as per SBP, total borrowings of the Banking sector came in shy of Rs10trn (+36% YoY). This comes to 25% of sector's total assets being financed by borrowings, which was 20% a year back and 15% two years ago.

On the sectoral front, Cabinet Committee on Energy finally approved the policy to upgrade local refineries and produce cleaner fuels. Furthermore, govt revisited gas sector debt solution with reduced Rs414bn plan (previously Rs543bn). New approach involves gradual cash injection, dividends; we anticipate SOEs to independently source dividends for minorities.