Karachi, July 07, 2023 (PPI-OT): PSX Surges 2,750+ Points on IMF Approval, up 7% WoW

Investor enthusiasm over government's agreement with IMF fueled market bullishness. Increased market activity on the first trading day also resulted in a temporary one-hour trading suspension due to a regulatory measure aimed at curbing excessive volatility. KSE-100 index closed the week at 44,207, up 2,755 points WoW. Sector wise, Refinery (17% WoW), Technology (14% WoW) and Engineering Sector (12% WoW) outperformed during the week. On the economic front, Moody's issued a positive statement, expressing that Pakistan's agreement with the IMF will provide support for macroeconomic stability. IMF Executive Board will likely have a meeting on July 12 to approve disbursement of US$1.1bn for Pakistan.

As per PBS data, FY23 trade deficit narrowed to US$27.5bn, a significant reduction of 43% YoY. News of government's disbursement of Rs142bn to over a hundred IPPs in order to settle their dues was received positively by the market. As per latest provisional data for OMCs, sales for FY23 clocked in at 16.6mn tons (-26% YoY). Similarly, for cement sector, FY23 dispatches totalled 44.6mn tons, marking a 16% YoY decline owing to overall slowdown in economic activity. SBP reserves increased by US$393mn WoW to US$4.5bn.