Karachi, April 15, 2022 (PPI-OT): Market gains 5% WoW over political clarity

The week started on a positive note in response to clarity on the political front after major political development over the last weekend. KSE-100 gained 1,700 points on the first trading day of the week to close at the level of 46,145. Index closed the week at 46,601, gaining 4.9% WoW where traded volume averaged at 477mn shares per day. Foreigners also turned buyers this week where net foreign buying clocked in at US$1.3mn. Pak Rupee showed recovery during the week and closed at a PKR/USD of 181.6 in the interbank on Friday. Country’s foreign exchange reserves, on the other hand, fell by US$450mn last week owing to repayment of external debt.

On the news front, the government and SBP showed confidence regarding the resumption of IMF programme as it would make inflows from other countries easier to meet the country’s financial needs. Moreover, Moody’s and World Bank shared their revised-down GDP growth forecast for Pakistan during the week citing energy subsidies by the outgoing government an additional burden on country’s budget.