Karachi, April 28, 2022 (PPI-OT): Market falls by 0.7% WoW

After a jump start to the week on the first day, KSE100 continued to decline thereon through the rest of the week, closing in at 45,249, down by 0.7% WoW. Major contributors to the market decline were the Cement, Chemical and IT sectors on a WoW basis. Foreigners turned net buyers this week with total net buying clocking in at US$3.2mn. Major buying was broadly witnessed in Tech. (US$1.6mn) while Banks witnessed selling of US$2.6mn during the week. On the news front, the week started with positive feedback from IMF post its meeting with Finance Minister Miftah Ismail regarding the country’s Extended Fund Facility.

On the other hand, Kibor rates broke their 13 year high during the week turning the market rife with expectations of yet another interest rate hike. Budget deficit during 3QFY22 also swelled 2.3x YoY to Rs1.19 trillion as per data released by the Ministry of Finance. Cut-off yield on GoP MTBs further increased up to 129bp in the auction held during the week where the federal government raised Rs672bn. On the international front, European gas prices soared 20pc after Russia halted its exports to Poland and Bulgaria as the countries failed to make payments for gas in Rubles.