Karachi, April 08, 2023 (PPI-OT): IMF delay keeps KSE-100 in check, stable WoW

The market remained stable WoW closing at 40,050 points owing to the prolonged delay in the IMF program. This comes despite some clarity on the political front as ECP following orders from the Supreme Court announced elections in Punjab on 14th May-23. Sectorwise, Oil and Gas sector (1.2% WoW) emerged as the top performer following news of crude oil production cuts by the OPEC countries. Tobacco Sector (11.6% WoW) on the other hand was among key under-performers. Foreigners turned net buyers this week showing interest in the Oil and Gas sector.

On the news front, with administrative controls on imports intact, trade deficit continued to narrow, now at US$1.46bn, down 21% MoM. Imports declined 5% MoM whereas exports improved 8% MoM. In a bid to control inflation, SBP continued on with further monetary tightening increasing interest rate by another 100bp to now 21%. SBP reserves remained largely stable at US$4.2bn, a marginal decline of US$36mn WoW. OMC sales continued to slide during Mar-23 clocking in at 1.1mn tons, down 9% MoM while Cement sales for March showed a similar trend declining to 3.8mn tons, down 6% MoM as a result of the ongoing economic slowdown.