Karachi, July 09, 2021 (PPI-OT): KSE100 closes the week flat yet again

The KSE100 closed the week flat at 47,563 level, shedding just 123 points over last Friday’s closing. Overall activity on the bourse remained damp during the week as average traded volumes declined by 22% WoW to 486mn shares per day. On the news front, Auto manufacturers across the board have slashed car prices to pass on the impact of the FED reductions. In light of the rising international commodity prices, local players increased prices of rebar.

Similarly, prices of DAP were also increased domestically to pass on the international surge in prices. EFERT and FFBL were outperformed during the week. On the economy front, foreign exchange reserves with the SBP jumped by US$1.1bn to a multi-year high of US$17.2, reportedly due to flows from the World Bank and China.

This does not reflect the US$1bn Eurobond that was floated this week. Furthermore, the government raised Rs146bn in the latest PIB auction where a major chunk was raised in the 3-year tenor. With regards to the Coronavirus, Asad Umar has warned that clear signs of the fourth wave have already begun to show due to poor SOP compliance coupled with the spread of new variants of the virus.