Karachi, August 19, 2022 (PPI-OT): Positive momentum from last week continues

The week started on a positive note with the index gaining 764 points on Monday due to the news of Saudi Arabia’s plan to deposit US$3bn along with a monthly US$100mn support in POL products for the next 10 months. Pakistan equities closed the week at 43,270, reporting an increase of 1% WoW. Volumes also witnessed an increase of 51% WoW with an average of 519mn shares/day traded during the week. Shehbaz Sharif and Saudi Crown Prince Muhammad Bin Salman agreed that there will be ongoing cooperation in the fields of investment, energy and trade.

Moreover, Prime Minister is expected to propose a long term LNG deal with Qatar during his visit to the country next week. In other news, Pak Rupee appreciated 0.6% against US$ whereas, Petrol prices were raised during the week to cover fluctuations in global oil prices. FY22 LSM output grew 11.7% YoY whereas Textile exports declined 13% MoM for the month of July-2022. Remittances for July-2022 were reported 8% YoY lower mainly due to fewer working days during the month. Govt announced to lift the ban on Import of luxury items but with the caveat that such imports will be heavy taxed. SBP reserves rose US$67mn to stand at US$7.9bn for the last week.