Karachi, April 01, 2022 (PPI-OT): Positive momentum continues

PSX continued on the recovery trend this week as well. The week started on a positive note in response to a significant drop in commodity prices. Notable activity was observed in the Cement sector due to lower coal prices whereas Engineering sector also remained in the limelight due to price hike announced by rebar manufacturers. The index closed at 45,152, gaining 3.7% WoW. Foreigners remained sellers during the week with net foreign selling of US$15.6mn. Investor confidence improved during the week which was evident from increase in volumes which rose 116% WoW.

On the news front, domestic political arena remained heated on account of the no-trust motion. Country’s foreign exchange reserves fell drastically by US$3bn last week mainly due to repayment of a syndicated loan facility from China. Rollover of this facility has been approved as per the ministry and is expected to be processed in the coming week. Pak Rupee hit its record low as a result where PKR//USD closed at 184.5 in interbank on Friday. Moreover, the IMF and Pakistani authorities are in talks regarding existing policies and new initiatives that would promote macroeconomic stability in context of the Russia-Ukraine tensions. Furthermore, headline inflation for the month of Mar-2022 came in at 12.72% YoY.