Karachi, June 23, 2023 (PPI-OT): KSE-100 slumps as IMF expiration nears, down 3% WoW
KSE-100 Index continued with the bearish trend as IMF review continued to prolong. The market closed the week at 40,605, down 1,236 points WoW. Sector wise, leasing cos (-14.1% WoW), Transport (-10.5% WoW) and Glass Sector (-8.8% WoW) underperformed during the week. Foreigners were net buyers (US$2.9mn) with major buying witnessed in the Banking Sector (US$1.0mn). On economic front, Current account balance reported a surplus for the third time in a row, reported at US$255mn for May-2023, further reducing 11MFY23 CAD to US$2.94bn. Surplus was supported by Trade Deficit reporting a lower quantum than Remittances.
Balance of payment, however, turned negative breaking its streak after posting two positive months. As per SBP's latest update, FDI in the country plunged by 21% during the first eleven months of FY23. During the week, government constituted three special committees to ensure success of the newly formed Special Investment Facilitation Council (SIFC), with Chief of Army Staff also being a member on one of them. In other news, PM Shehbaz, on the sidelines of Global Financing Summit in Paris, briefed IMF's MD on Pakistan's economic outlook seeking release of the stalled funds. SBP reserves clocked in at US$3.5bn, a WoW decrease of US$482mn.