Karachi, June 25, 2021 (PPI-OT): KSE100 loses another 635 points WoW

The KSE100 index closed today at 47,603 level, having lost 635 points (1.3%) during the rollover week. Investor participation also declined as traded volume dipped by 34% to 694mn shares per day. In a latest development, it has been proposed that Pakistan be reclassified to MSCI Frontier Markets. Moreover, a decision of the FATF meetings is expected to be announced today post market close. On the economic front, talks between Pakistan and the IMF are still underway but both parties seem hopeful of reaching an agreement soon.

Moreover, Pakistan has reportedly secured a US$4.5bn three-year financing facility from ITFC for the import of Crude Oil, petroleum products and LNG. Meanwhile, a power crisis looms ahead as a final decision on the dry-docking of the LNG vessel is still awaited. Over the week, SSGC suspended gas supply to industrial units and CNG stations to ensure supply to the domestic sector. The Steel sector remained under pressure as plants announced closures to retaliate against the government’s decision to incentivise manufacturers in erstwhile FATA. In other news, Textile exports increased 19% YoY during 11MFY21 and Foreign exchange reserves fell by US$311mn to US$16.1bn as per latest data available.